Tag Archives: ECB
FX Daily Strategist: Europe
* EUR Short covering remains the big driver The big driver in FX continues to be short covering of EUR positions on anticipation of a strong ECB response to lower sovereign debt yields; yesterday’s news that ECB Draghi won’t be attending the Jackson Hole conference on account of a busy schedule play to this.
Euro re-squeezed ahead of Friday’s main event
The positioning squeeze on stale short Euro and long Aussie trades continues as the markets mull how much QE3 is priced in and what Bernanke may or may not hint at this Friday.
Asia today: Minutes suggest the RBA on hold; AUD a touch firmer
Asian opening levels were similar to yesterday and it took the RBA minutes to stir up some action. The minutes held few surprises from the post-meeting statement but did reinforce the notion that the RBA is in no rush to cut rates in the near-term and this lent support to the AUD. The RBA noted […]
Draghi talks tough, but Euro hits airpocket on lack of specifics
Draghi unleashed a string of firm-sound rhetoric to open the ECB press conference, touching on a number of key areas, but the lack of “real action right now” has the market in a big knee-jerk disappointment.
A busy week ahead – too much QE priced in?
The FOMC is up Wednesday – more ambiguous rhetoric or is this a set-up meeting for a September QE3 move? And the ECB will need to see Draghi following up on last week’s rhetoric or else…
Asia today: Can the ECB really save the EUR? More clues this week
While the EUR had retreated from its 3-week highs versus the US dollar in the latter stages of Friday’s NY session, it opened a tad higher at today’s Asian open following weekend press reports in Europe.
PBOC joins ECB and BoE easing fest, but EUR and risk are wilting
The Euro is was very weak on the ECB cut, even if it was in line with expectations. Meanwhile, the PBOC joined the easing action with a rate cut of its own – Aussie tried to jump on the news, but should it?
ECB: Policy interest rates at new lows
OUTCOME OF TODAY’S ECB MEETING: KEY ECB INTEREST RATES: *All ECB policy rates down by 25bps * Unanimous decision
EU policy support delivered – implementation risks weigh
While the EU Summit produced relatively far reaching results, their implementation remains uncertain. Positively, the vicious circle between state and bank risk will be at least partly restricted once the ESM becomes fully operational and EU banks can be recapitalized directly from common rescue funds.
Pre ECB: What’s next, Mr. Draghi?
ECB MEETING 05 JULY – EXPECTED OUTCOME ECB monetary policy strategy: Unchanged ECB policy interest rates: Unchanged Economy: Downside risks predominating Inflation: Decelerating slowly
Asia today: Risk currencies a tad higher in a slow Asian session
Another quiet, tight-ranged Asian session as the EU summit looms ever closer. The start of the session saw the only data point of the day – New Zealand’s trade data for May.
Asia today: AUD soars (again) after very strong employment data
The Australian economy is on a roll with another data set today that almost defies belief. After yesterday’s stunning GDP performance it was the turn of labour data to beat consensus estimates by a large margin. The Australian economy added 38.9k jobs in May, well above the flat reading expected, and it was difficult to […]