Tag Archives: EUR

Summary: Purchases increased for longer but at a lower level; overall, more purchases than anticipated. Euro spiked higher on the announcement, but has subsequently dropped 2 cents. Lower inflation forecast for 2019 shows scope for a further extension. Mario Draghi - Click to enlarge The ECB announced it would extend its asset purchases from April through December next year, but at a modestly slower pace of 60...

Summary: Purchases increased for longer but at a lower level; overall, more purchases than anticipated. Euro spiked higher on the announcement, but has subsequently dropped 2 cents. Lower inflation forecast for 2019 shows scope for a further extension. Mario Draghi - Click to enlarge The ECB announced it would extend its asset purchases from April through December next year, but at a modestly slower pace of 60...

Summary: ECB will likely extend asset purchases in full. It may modify the rules by which it buys securities. It may adjust the rules of engagement for its securities lending program. The ECB meets tomorrow. The meeting is live in the sense that the central bank is widely expected to take fresh actions, ostensibly backed by new staff forecasts. There are three broad areas that the ECB is expected to address....

Swiss Franc EUR/CHF - Euro Swiss Franc, December 07(see more posts on EUR/CHF, ) Source: Investing.com - Click to enlarge The pound has seen a very marked turnaround against the Swiss Franc with almost 8 cents gained in the last few weeks. GBP/CHF appears to have 1.30 in its sights and at this pace it should be there in record time. This week sees a number of political events which are playing out into the...

Summary: The ECB accepts Greek bonds as collateral but does not include them in its asset purchases. A new staff-level agreement by the end of the year could change that. Finance ministers imply that Greece’s debt is sustainable, but the IMF disagrees. The ECB does not include Greek bonds in its sovereign bond purchase operation. However, the progress is being made, and it is possible that starting early next...

Swiss Franc EUR/CHF - Euro Swiss Franc, December 06(see more posts on EUR/CHF - Euro Swiss Franc, ) - Click to enlarge FX Rates The foreign exchange market is quiet. Ranges are narrow, with the US dollar mostly consolidating against the major currencies. Given the push lower yesterday, the shallowness of its recovery warns of the greenback’s downside correction after strong gains last month may not be...

Swiss Franc EUR/CHF - Euro Swiss Franc, December 05(see more posts on EUR/CHF, ). - Click to enlarge FX Rates After softening ahead of the weekend, the US dollar has begun the new week on a firm note.  It is gaining against most major and emerging market currencies.  Outside of what appears to be a staged call between US President Elect Trump and the Taiwanese President, the developments in Europe grabbed the...

Summary: US developments have driven the dollar rally and bond market decline over the past three weeks. Attention shifts to European politics and the ECB meeting. Bank of Canada and the Reserve Bank of Australia meet but are unlikely to change policy. United States There were significant moves in interest rates and currencies last month. The drama was primarily spurred by the solidification of expectations...

Summary: USD had a large rally in November. We had been looking for a short and shallow pullback. Here are thoughts about what would signal an outright correction.   The Federal Reserve’s real broad trade weighted dollar index rose 2.3% in November.  This is the largest monthly advance since September 2011.   This is the measure that officials and economists use to try to assess how the currency movement impact...

Swiss Franc EUR/CHF - Euro Swiss Franc, December 02(see more posts on EUR/CHF, ). - Click to enlarge Federal Reserve The capital markets are finishing the week amid speculation that the driving forces of the past three weeks are ebbing.  Global equities and the dollar may be snapping three-week advances.  The issue is whether it is a consolidation or trend change.   The former is a more prudent assumption until...