ECB to set tone for Central Banks

3 September, 2015

The focus on Central Banks will increase today as the ECB makes its latest policy announcement. This is significant in that it is the first of what is a major month of monetary policy making with the Bank of England’s rate decision and voting results next Thursday, followed by the much anticipated FOMC rate decision the Thursday after. The ECB has had a busy year after introducing its formal quantitative easing program and then having to work hard alongside politicians to prevent the break up of the Eurozone. Now that the risk of deflation and Grexit have subsided, investors will be keenly listening to see what Mario Draghi has to say about the recent movements in financial markets and he is expected to maintain a dovish stance with a lowering of inflation expectations. What would cause euro weakness is any indication that might suggest further monetary easing from the ECB.

Today’s meeting will also be monitored by other central bankers as its dovish tone could rub off on the main event of the month, none other than the FOMC. As we approach September 17th more analysts are joining the ‘no change’ camp especially after yesterday’s ADP figure that was slightly below expectations and the previous month was revised lower. A lot will ride on tomorrow’s nonfarm payroll data, expected to show 220k new jobs.


Source link  
Risk Appetite Returns

North Korea official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam...

US-Korean Tensions Rattle Markets

Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned...

Global Manufacturing Grows

Recent data releases have shown that global manufacturing saw an increase in July, further confirming global economic momentum has carried into H2...


All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

More Record Highs for Equities?

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week...


US Data brings on USD bulls

U.S. job growth surged more than expected in June and employers increased hours for workers, with signs of a labor market strengthening that is likely...

Biggest Quarterly Drop in 7 Years

USD recovered marginally on Friday, but had its biggest quarterly decline against several currencies in nearly 7 years following hawkish signals...

Markets look to Central Bankers

Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters...

  


Share: