Draghi
Mixed Central Bank Signals Lifted the Dollar
November 20, 2015
Stanley Fisher, Vice Fed Chair, said some major central banks, meaning the Fed, could move away from a zero interest rate policy relatively soon, noting also that Fed officials want to avoid the element of surprise and that counterparts in in emerging markets are ready for an initial Fed move. Atlanta Fed President Lockhart indicated […] More
Draghi, Yellen and Greece in the News
July 16, 2015
Not much data were released in Asia and Europe today. ECB President Draghi’s press conference at 12:30 GMT will be dominated by questions about Greece. As expected, ECB interest rates were left unchanged by the Governing Council. The refinancing rate, deposit rate, and marginal lending rate stay at 0.05%, -0.20%, and 0.30%. With violent protests […] More
Many Competing Stories but a Unifying Theme is Better Growth in Europe by a Slower Trend Elsewhere
April 15, 2015
ECB President Draghi is wrapping up his press conference. Policy wasn’t changed further. Focus is currently on full implementation of policy initiatives taken recently. Draghi finds the favorable impact of quantitative easing to be impressive: real interest rates have fallen as expected inflation is rising. An important new sentence in the released statement explains what […] More
Market-Moving Comments and Then a Chinese Interest Rate Cut
November 21, 2014
ECB President Draghi gave a dovish speech reaffirming the central bank’s readiness to take further action to lift inflation back to target. U.S. President Obama spoke to the nation in prime time, announcing plans to permit some 5 million undocumented residents not to be deported. San Francisco Federal Reserve President Williams warned about the danger […] More
ECB Hidden Agenda: Weaker Euro
November 6, 2014
The ECB didn’t change its three interest rates. The refinancing rate of 0.05% has been flanked by a marginal lending rate of 0.3% and a deposit rate of -0.20%. Each was cut by 10 basis points in September. Draghi’s main message, emphasized in his press conference, is that the ECB balance sheet will be expanding […] More
Markets Closed for Holiday in Japan, the United States and Canada
October 13, 2014
After last week’s swoon, financial market volume on Monday will be suppressed by three market closures, Japan for Health and Sports Day, the U.S. for Columbus Day, and Canada for Thanksgiving. Stocks in the Pacific Basin closed down 2.8% in Taiwan, 1.1% in New Zealand, 1.0% in Indonesia, 0.7% in Singapore and South Korea, 0.6% […] More
A Number of Surprises
October 9, 2014
Fed officials rarely comment on the dollar, so the following passage from minutes of September 16-17 meeting of the FOMC caught the market’s attention, sending the dollar and bond yields lower and turning around Tuesday’s swoon in equities. Some participants expressed concern that the persistent shortfall of economic growth and inflation in the euro area […] More
Euro Remains Firm ahead of Draghi Testimony
July 14, 2014
ECB President Draghi will be testifying today before the EU Parliament in Strasbourg, France. Excessive euro strength is a more pressing issue. Federal Reserve Chair Janet Yellen testifies Tuesday on Monetary Policy and the State of the Economy before the Senate Banking Committee. She will reprise that testimony Wednesday before the House Financial Services Committee. […] More
Holiday Closures in U.K. and United States
May 26, 2014
The United States is observing Memorial Day, and there is a spring bank holiday in Britain. These closures will dampen market activity today. The dollar is unchanged against the euro, Swiss franc and kiwi, up 0.1% versus the Chinese yuan and off 0.1% relative to the yen, loonie, Australian dollar and sterling. Share prices advanced […] More
Euro Weakens Further in Post-Draghi Reaction
May 9, 2014
The takeaway from yesterday’s ECB press conference is that it’s a matter of what kind of stimulus the ECB will announce next month, rather than whether something is going to be introduced then. A big part of this preparation stems from mounting frustration with the euro’s prior appreciation and how the currency’s strength could promote […] More
