Tag Archives: ECB
LTRO apparently means buy the rumor, sell the fact!
EURUSD taken all the way to “perfect” resistance ahead of the 3-year LTRO result, which saw nearly half a trillion Euros of take-up. And yet EURUSD faded sharply as EU sovereign spreads widened rather than tightening. Whoops…
UBS Morning Adviser: BoJ Unchanged
The Bank of Japan left policy entirely unchanged at its meeting overnight, as widely expected. Market focus is now fixed squarely on Europe again as the ECB gears up for the first of two three-year LTROs. By all accounts, the take up is expected to be strong and, if so, markets would likely interpret this […]
Behavioral Finance: Daily Forex Outlook: How long is the short-term?
EUR/USD (1.3005) In his speech before the European Parliament on Monday, ECB President Draghi not only reiterated that the austerity programmes cause short-term economic contraction, he even gave clues as to what ‘short-term’ meant.
Behavioral Finance: Daily Forex Outlook: ECB may have bonded with the markets
EUR USD (1.3030) The combination of a quadruple witching expiration and the absence of an EU summit at the weekend, ensured low volatility on Friday.
Rumour mill keeps spinning: now ESM to get ECB funding
Despite it being another light day data wise we can anticipate more action today ahead of the highly anticipated December 9 EU Summit on Friday. In other Eurozone news Greek Prime Minister Papademos’ 2012 budget got parliamentary approval; a budget which aims to cut the deficit in half to 5.4 percent of GDP.
EU Treaty change: Its all about timing
“Life is about timing” – Carl Lewis Australian GDP data overnight was higher than expected with the Q3 growth comparison rising 1.0 percent from the previous quarter (+2.5% year on year), in addition to an upward revision to the Q2 data itself.
Behavioral Finance: Daily Forex Outlook: IMF detour to pave the way?
EUR/USD (1.3405) There is yet another eurozone resolution blueprint in the market namely a special fund under the auspices of the IMF. Market perception seems to be that the process to channel around €200bn from ECB, Fed and other central banks to a special fund coordinated by IMF is already underway.
FX Daily Strategist: Europe London – 05 December 2011
EURUSD defies an okay US payrolls report… Taking revisions into account, Friday’s US payrolls report was on the strong side of expectations, but markets chose to focus on the fact that much of the fall in the unemployment rate was the result of of a 0.2% drop in the labour participation rate rather than from […]
FX Focus: AUD and NZD – The eurozone effect
The very near-term risk of eurozone governments failing to commit to faster fiscal consolidation and the ECB failing to commit to larger bond purchases points to downside risks for the high-beta AUD and NZD, following the recent rally. But we remain constructive over the medium term for the following reasons:
Behavioral Finance: Daily Forex Outlook: Desperate Optimism?
EUR/USD (1.3335) Even as banks, lawyers, brokers and big businesses prepare contingency plans for a possible eurozone breakup, the markets nevertheless seem to be pinning their hopes on the outcome of the ongoing EU Finance Ministers meeting.
Behavioral Finance: Daily Forex Outlook: ‘Risk-on’ is a thing of the past
EUR/USD (1.3490) Jobless claims, housing permits and the homebuilder sentiment were the bright spots on the US data front yesterday. However, ‘risk-on’ is an expression that has dropped out of investors’ vocabulary in recent weeks.
Behavioral Finance: Daily Forex Outlook: ECB may still get into action
EUR/USD (1.3490) The Italian yields stood at around 7.06 percent on Wednesday even after the market reportedly saw substantial ECB bond-buying.