Tag Archives: ECB
ECB Coene: Should Move Main Refi, Deposit Rate In Tandem
European Central Bank Governing Council member Luc Coene suggested Thursday that any next move on interest rates would see negative rates on the deposit facility.
What if the euro view is wrong?
We have been arguing that EUR/USD should weaken from these levels on the back ofpeaking equity inflows, a turn in rate differentials and building ECB verbal intervention.
FI Eye-Opener: Dovish Draghi to deliver more soft words
Bonds mostly gained yesterday on both sides of the Atlantic, but the move lower in both the US and German 10-year yields was only about 1bp.
France FinMin: Not Trying To Give ECB Advice On Euro
France’s Finance Minister Michel Sapin repeated Wednesday that the strong euro was a problem for his country and the Eurozone but added that the government was not seeking to give advice to the European Central Bank.
In G-20 Sandbox, G-3 Rangy So Mkt Eyes EM, Commodity FX
In the G-20 currency sandbox, currency pairs such as the euro and dollar-yen have held in tight ranges recently, leaving traders to explore other more volatile choices in emerging markets and commodities.
FI Eye-Opener: China not rebounding like it used to
German bond yields expectedly opened higher yesterday, but did not move that much during the day, and the 10-year yield ended the day up by around 2bp.
FI Eye-Opener: Portuguese bond auctions back
US Treasuries took a beating last Thursday ahead of the Easter, and the curve steepened, as economic data (initial jobless claims, the Philadelphia Fed manufacturing index) impressed.
ECB Mersch: Continuation of Euro Rise Would Trigger ECB Reaction
A continuation of the appreciation of the euro would force the European Central Bank to take action to maintain monetary accommodation, ECB Executive Board member Yves Mersch said Thursday.
FI Eye-Opener: Easter bunnies to boost bonds today
Core bond yields edged higher yesterday, though the moves were quite limited. The German 10-year yield closed higher by about a bp. Intra-Euro-zone bond spreads narrowed further,
Altering our FX forecasts to reflect longer-duration weakness in the USD
We have decided to fundamentally change our USD view. We now donot expect the USD to significantly strengthen until the real Fed Fundsrate turns positive in early 2016 (chart 1).
FI Eye-Opener: No support can survive constant pounding
After several rounds of pounding, the German 10-year yield finally breached the support at 1.50%, ending the day at around 1.47%, down some 5bp for the day – a bullish signal.
FI Eye-Opener: Still going lower
The German 10-year yield touched 1.49% again yesterday, but could still not make a convincing break lower. Better-than-expected US retail sales (see more below) sent the yield higher again later,