ECB's next step may be expansion of asset purchase program

Oct 21, 2015 04:27 am UTC| Commentary Central Banks

There has been a consistent tone in most recent comments by ECB Governing Council members. These comments have not strayed far from the stance communicated in the September press conference, the ensuing Monetary Policy...

Tighter conditions until December could harm Euro area growth

Oct 21, 2015 03:32 am UTC| Commentary Central Banks

While Draghi usually displays an impressive mastery of the press conference, he has had communication mishaps in the past. If he comes out too hawkish next week, ie, too dismissive of the risks, the euro exchange rate...

The more the ECB waits, the more it will need to give

Oct 21, 2015 03:19 am UTC| Commentary Central Banks

The more the ECB waits, the more it will have to do to convince the market it can deliver on its price stability objective. QE2 is increasingly consensual among commentators, and market expectations for a decisive further...

No one is happier with the Fed in limbo than home builders

Oct 21, 2015 02:15 am UTC| Commentary Central Banks

No one is happier with the Fed in limbo - and 10Y Treasury yields back at 2.05% - than home builders. The NAHB index of builder sentiment is now up to 64, its highest since October 2005, three months after the peak of the...

Bank of Canada expected to remain on hold

Oct 20, 2015 23:32 pm UTC| Commentary Central Banks

Neither markets nor analysts look for the BoC to cut rates today (OIS has just -3bps priced in). The Banks last statement was very balanced and any shift in tone this time around is likely to be modest. One major takeaway-...

ECB preview: No change this week but euro area QE is here for the long haul

Oct 20, 2015 22:37 pm UTC| Commentary Central Banks

This week ECB is expected to continue sending a dovish message of standing ready to act if needed but, given the insufficient evidence of a sharp slowdown, no policy action is expected. While recent German data wobbles add...

Fed may hike bank rates in 2016 and 2017

Oct 20, 2015 11:15 am UTC| Commentary Central Banks

Investors have markedly shifted their assessment of the likelihood of the Fed hiking rates this year and the extent of tightening in the next two years, as concerns about Chinas growth prospects erupted in early...