Currency War Series

Draghi sure took some pressure off the Fed, didn’t he?

Dec 04, 2015 02:47 am UTC| Commentary Central Banks

Draghi sure took some pressure off the Fed, didnt he? No big change to QE after all and the euro surges to $1.094 from $1.055 - a 3.8% strengthening that makes the RMB move back in August look like kid stuff, even if it...

ECB policy decision: Draghi fails to live up to his reputation

Dec 03, 2015 23:38 pm UTC| Commentary Central Banks

President Draghi has a long track record of not only meeting but indeed exceeding market expectations. His whatever it takes approach has been of paramount importance to the marked improvement in confidence and credit...

ECB rate decision: Draghi disappoints with a ‘light menu’, but enough to mark end of easing

Dec 03, 2015 22:28 pm UTC| Commentary Central Banks

Markets priced a 15bp deposit rate cut ahead of the meeting and most analysts also expected an expansion of the monthly purchases, hence the measures were not enough to fulfil expectations. The ECB was expected to...

Reserve Bank of New Zealand to cut its official cash rate by 25bps

Dec 03, 2015 21:29 pm UTC| Commentary Central Banks

The Reserve Bank of New Zealand is expected to cut its official cash rate by 25bps on Wednesday but such expectations are hardly unanimous. Governor Wheeler poured cold water on any minority thesis that the central bank...

Brazil Copom minutes – No constraint, but not yet ready to hike rates

Dec 03, 2015 18:29 pm UTC| Commentary Central Banks

The main message the Copom sends to market observers with todays minutes is that it can raise the interest rate despite the path of other macroeconomic policies. According to our interpretation, by doing so the board wants...

ECB's Draghi runs into opposition

Dec 03, 2015 16:29 pm UTC| Commentary Central Banks

The ECB didnt ease monetary conditions as much today as President Draghi had hinted at. In particular, the ECB Council did not choose to increase the volume of monthly bond purchases or to drop the reference to a possible...

Currency War Series

Why interest rates are taking divergent paths in Europe and the US

Dec 03, 2015 12:10 pm UTC| Insights & Views Central Banks

The prospect that the central banks of the US and the eurozone will soon make opposing moves on policy rates has allowed financial markets once again to demonstrate their neuroses. Some market participants are expecting...