Trichet
Peripheral Sovereign Debt Concerns Weigh on Euro
December 20, 2010
The euro edged 0.1% lower against the dollar, which otherwise shows losses of 0.5% versus the kiwi, 0.4% against the Swiss franc, 0.3% relative to the Australian dollar, yen and sterling, and 0.2% against the Canadian dollar. ECB President Trichet reiterated the views that EMU member governments must adhere to fiscal discipline but called speculation […] More
Dollar Down Ahead of FOMC Statement
December 14, 2010
The dollar overnight lost 0.8% against the Swiss franc, 0.7% versus the Australian dollar, 0.6% against the yen and euro, 0.3% relative to the Canadian and New Zealand dollars and 0.1% vis-a-vis the yuan and sterling. The last scheduled statement of 2010 from the Federal Open Market Committee will be released around 19:15 GMT today. […] More
Exit Strategy of Unconventional ECB Measures Paused
December 2, 2010
The ECB: Retained its key interest rate structure of a 1.75% marginal lending rate, a 1.0% refinancing rate, and a 0.25% deposit rate and called these levels appropriate and accommodative. Reiterated that unconventional measures are “temporary by nature” and intended to permit an appropriate transmission of the primary policy stance. Chose to continue at least […] More
ECB November Press Conference
November 4, 2010
After leaving interest rates unchanged as expected, ECB President Trichet’s statement didn’t break new ground. Rate settings are accommodative and appropriate. Euroland’s recovery is expected to retain positive momentum in an uncertain environment. Monetary analysis points to contained inflationary pressure in the medium term. Economic analysis shows growth contribution from both exports and domestic demand […] More
Stronger Dollar to Start Week
October 18, 2010
The dollar has recovered 1.0% against the loonie, 0.6% versus sterling, 0.4% against the euro, 0.3% vis-a-vis the Australian dollar, and 0.1% against the kiwi. The greenback is steady against the yuan and 0.3% weaker relative to the yen. The mostly firmer dollar follows Bernanke’s pre-weekend remarks that solidified the likelihood of Fed quantitative easing […] More
No Substantial News Made This Month by ECB
October 7, 2010
The ECB left key interest rates (a 0.25% deposit rate, a 1.0% refinancing rate, and 1.75% marginal lending rate) unchanged at levels initially established in May 2009. President Trichet’s formal statement made a number of familiar observations. Current “accommodative” policy settings are “appropriate.” Inflation has moved higher on base effects as expected but is likely […] More
Trichet Spouts Same Old Stuff
July 8, 2010
European monthly statements evolve much more slowly and smoothly than market perceptions. Traders don’t like the monotony of these monthly staged events but feel compelled to stay tuned, lest Trichet utter a market-moving surprise. In the first hour following the start of today’s conference, the euro had appreciated fractionally further against the dollar, challenging but […] More
No Remarkable Pronouncements From Trichet
April 8, 2010
The ECB kept its key interest rate levels, unveiled no specific new details about haircuts to rein in liquidity-supportive facilities, and released a formal statement that stuck closely to script. It called rates “appropriate,” inflation expectations “well anchored” and consistent with target, growth prospects “moderate” but “uneven” and set in an environment of “uncertainty.” Consumption […] More
Better Market Tone Tuesday
February 9, 2010
Commodity currencies have firmed against the U.S. dollar, and the euro and Swissy have recovered, too, despite continuing worries about Greek, Spanish, and Portuguese public finances. The greenback fell 0.9% against the kiwi, 0.7% against the Australian dollar, 0.4% against the euro and Swiss franc and 0.3% relative to the Canadian dollar. The yen lost […] More
Greece Default Fears Send Euro Lower
January 15, 2010
Trichet’s unbending remarks that Greece will not get special policy favors to address its huge government deficit has weighed sharply on the euro, which, along with the Swiss franc, fell 0.8% against the dollar. One wonders if one intent of Trichet’s stance on Greece was in fact to temper the euro. The dollar also gained […] More
