Tag Archives: ECB
ECB leads the way
Stock markets gained modestly last night after G7 pledged to closely follow developments in the Euro zone area. Meanwhile, Moody’s lowered ratings on Austrian banks and six German banks on back of increased risk of further shocks from the Euro zone debt crisis as well as the banks’ limited loss-absorption capacity.
Japan, Singapore post better Q1 GDP but risk appetite still shaky
Asian growth was the focus for markets this morning with Japan and Singapore both producing above-forecast results. However, the effect across the region was dampened by gloomy near-term outlooks and the ongoing Greek pressures.
ECB: Primary objective remains maintaining price stability
KEY ECB INTEREST RATES: * Unanimous decision to keep policy interest rates unchanged, as widely expected. * No discussion about cutting rates * Monetary policy stance accommodative
FX Daily Strategist: Europe
Disappointing US ADP cannot compensate for weaker PMIs elsewhere Risk remained under pressure yesterday, with sentiment weighed down by poor Eurozone and Swiss PMI data, and by pressure on Spanish and Italian bank stocks. EUR- and CHF-led dollar strength was partially reversed by the weaker than expected US ADP employment report, but while the USD […]
Market remembers how it is supposed to react to bad news
A string of awful European PMI’s today has the market in a lousy mood and the USD back on top where it belongs. Let’s see if the next couple of days accelerate the move or keep us tied up in range purgatory.
Muted market reaction to China’s Yuan band widening
Today’s Asian session was a rather muted affair, despite a couple of weekend announcements from the People’s Bank of China. They announced a widening of its daily Yuan trading band to 1 percent in either direction from the fix, up from the existing 0.5 percent with intended aim according to the PBOC to “meet market […]
FX Daily Strategist: Europe
SMP to the rescue? Italian auctions to test market’s renewed confidence What went down on Tuesday went up on Wednesday, though only about half of Tuesday’s G10 FX moves were reversed. The turn-around was largely attributed to improved sentiment in European debt markets after comments from ECB Executive Board member Benoit Coeure saying that market […]
Mild recovery in risk currencies in Asia ahead of Easter break
The overall risk appetite in Asia Thursday was dictated by the Shanghai Composite Index, which pushed into the black during early trading and hence EUR and risk currencies were squeezed a touch higher.
FX Daily Strategist: US
Better IFO followed by profit taking on EUR-crosses Markets have been trading without any clear sense of conviction, however the mood in FX and equities has been more riskoff. The concern appears centred on Spain with the IBEX down 1.60%, while other bourses are only about 0.20% lower- this however is at odds with price […]
Risk buoyed again by softer China CPI, hope for a strong PSI deal
China reported February’s inflation data this morning and CPI showed a sharp drop to 3.2% y/y from 4.5% the previous month, beating positive consensus estimates of 3.4%. Food prices fell 0.3% m/m after the Lunar New Year celebrations were completed.
FX Daily Strategist: Europe
Big LTRO elicits little excitement; FX market reacts more to little from Bernanke The EUR 529bn allocated at yesterday’s second 3-year LTRO was a little higher than our estimates of 400-500bn, and not significantly greater than market expectations of 470/500bn.
Risk currencies find a base as China PMIs improve
The start of the new month and the focus shifts to the array of PMI data from across the globe. Yesterday, the Chicago PMI set the tone with a strong reading of 64.0 from 60.2 (61.0 expected) but Asia was not quite able to match this stellar reading.