Archive for April 24th, 2014

Foreign Exchange Insights and Next Week

Euro Poker

April 24, 2014

The European Central Bank’s use of verbal intervention to contain the euro’s strength is producing diminishing results.  A change in this tendency is unlikely during the weeks just ahead. The ECB Governing Council at the April meeting felt that more information needed to be gathered before broadening unconventional monetary stimulus.  Much more pertinent data will be […] More

Central Bank Watch

Central Bank of the Republic of Turkey: Mixed Message

April 24, 2014

The latest policy statement from Turkish monetary officials struck a balance between guarding the lira against selling pressure and deferring to government pressure to ease.  In order to protect the exchange rate and blunt the impact of depreciation on actual and expected inflation, the one-week repo rate had been lifted from 4.5% to 10.0% in […] More

New Overnight Developments Abroad - Daily Update

Muted Reaction to Draghi’s Verbal Intervention

April 24, 2014

European Central Bank President Mario Draghi issued his bluntest warning yet regarding a readiness to escalate and broaden asset buying should inflation follow a lower-than-assumed path.  He explicitly said that additional euro appreciation could trigger such action unless the disinflationary implications are offset by other developments. The dollar is only 0.1% firmer against the euro and Swiss […] More