ECB likely to continue current QE program

In an interview, ECB President Draghi said that the QE programme undertaken by the ECB has worked better than expected. He also said that while it looks as though it will take somewhat longer for inflation to return to 2%, this is largely caused by the drop in oil prices. The ECB is expected to extend the current QE programme, but at the December ECB meeting at the earliest, and possibly not until next year, says Dnaske Bank.

The Chinese Yuan is now trading at its strongest level since the change of currency regime two months ago. The PBOC raised its fixing on Monday by 0.14 percent to 6.3406 and the currency has strengthened further in today's trading. The stock markets continued the positive trend in the U.S. and Europe on Friday and this morning Asian bourses have extended last week's rally led by strong gains in Chinese shares. 

U.S. treasury markets held broadly stable at the end of Friday and with a slightly flatter 2-30 curve. EUR/USD has moved higher and the EUR is now at its strongest against the USD since mid-September. Oil prices have held on to their gains from last week.