ECB's QE2 announcement more likely in December
Oct 21, 2015 05:41 am UTC| Commentary Central Banks
ECB President Mario Draghi manages to force a decision next week, but the bar on an immediate response seems to be high. An expectation of announcement of QE2 is extended from October to December. It is believed that...
Fed tightening may mount pressure on BRL
Oct 21, 2015 05:08 am UTC| Commentary Central Banks
The sharp deterioration in financial conditions in Brazil - given domestic and external sector developments - forced the BCB to come out in support of the BRL with some direct actions and indirect assurances (including the...
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-...
Germany lowers voting age to 16 for the European elections
IceCube researchers detect a rare type of energetic neutrino sent from powerful astronomical objects