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
