Tag Archives: ECB

Swiss Franc EUR/CHF - Euro Swiss Franc, October 27(see more posts on EUR/CHF, ). - Click to enlarge GBP/CHF rates have levelled out over the past couple of weeks following some heavy losses earlier this month. The Pound crashed following UK Prime Minister Theresa May’s comments regarding the triggering of Article 50 early next year. Whilst we knew this was coming the timeline was shrouded in uncertainty and the...

Swiss Franc EUR/CHF - Euro Swiss Franc, October 25 2016(see more posts on EUR/CHF, ). Source: Investing.com - Click to enlarge The pound had started the week looking more upbeat against the Swiss Franc but soon came under pressure just before Bank of England Governor Mark Carney met with a House of Lords committee about Brexit. There was a sudden 1% fall in the price of sterling in the minutes prior to the...

EUR/CHF The SNB might have been behind the jump from 1.08 towards 1.823 in the last two days. EUR/CHF - Euro Swiss Franc, October 25 2016(see more posts on EUR/CHF, ). Source: Investing.com - Click to enlarge GBP/CHF The pound had started the week looking more upbeat against the Swiss Franc but soon came under pressure just before Bank of England Governor Mark Carney met with a House of Lords committee about...

Summary: Fitch cut Italy’s rating outlook to negative from stable, while DBRS left Portugal’s rating and outlook unchanged. Europe and Canada’s free trade negotiations broke down, but many seem to be making exaggerating the significance of the drama. Japan and Australia report inflation figures, and both are exceptions to the generalization that price pressures are rising in (most) high income countries. There...

Summary: Fitch cut Italy’s rating outlook to negative from stable, while DBRS left Portugal’s rating and outlook unchanged. Europe and Canada’s free trade negotiations broke down, but many seem to be making exaggerating the significance of the drama. Japan and Australia report inflation figures, and both are exceptions to the generalization that price pressures are rising in (most) high income countries....

Summary: DB and Italian bank stocks have been moving in tandem. They suffer from fundamentally different problems. The euro has been selling off as the bank shares rebound. European banks may not be the main driver of the investment climate, but their challenges are not resolved.  Investors have focused on two country’s banks recently. Germany’s Deutsche Bank and Italian banks more generally. This Great...

This afternoon I had the privilege of being on Bloomberg TV, with anchors Scarlet Fu and Matt Miller. I was joined by an old market friend Bob Sinche. We had a lively discussion (what did you expect?) on two issues. The first was on the ECB. At his press conference earlier today, Draghi indicated that the question of extending QE and tapering was not discussed.  Bob argued that this was disingenuous. Of course it is...

Swiss Franc EUR/CHF - Euro Swiss Franc, October 20 2016(see more posts on EUR/CHF, ). - Click to enlarge GBP/CHF rates have fallen dramatically over the past month, as Sterling continues to find itself under pressure against the major currencies. However, despite these losses it is not all doom and gloom for those clients holding GBP, as Tuesday’s positive spike for the Pound proved. Currency does not move in a...

Summary: Extending or tapering QE was not discussed, but means little in terms of what the ECB decides in Sept. Draghi said growth risks are on the downside and inflation has yet to enter a meaningful uptrend. Reiterates that abrupt end of purchases is unlikely. ECB President Draghi said nothing to dampen expectations that in December, with the cover of new staff forecasts, the asset purchase program will...

Summary: Draghi will like emphasis inflation is the key to policy and ECB is committed using allow for its technical tools to achieve its legal mandate. Key decisions will be made in December. The more the euro rises against sterling, the greater the pressure for the euro to fall against the dollar. Mario Draghi - Click to enlarge The ECB meets tomorrow. Few, if any, are expecting fresh action. The...