Euro declined substantially today on the surprisingly soft stance by the ECB

Oct 22, 2015 22:42 pm UTC| Commentary Central Banks

The euro declined substantially today on the surprisingly soft stance by the ECB. Given that a 10bp deposit rate cut is expected in December. The experience from H1, when EUR/USD bottomed out just a few months after the...

FOMC Preview: Building a game plan for December

Oct 22, 2015 22:27 pm UTC| Commentary Central Banks

It is extremely unlikely that the FOMC will contemplate a rate hike at the upcoming gathering. More critically, officials will have to decide whether they still consider a December rate hike as likely and, if so, come up...

Dovish ECB to keep Danish central bank on hold

Oct 22, 2015 21:56 pm UTC| Commentary Central Banks

The European Central Bank (ECB) today signalled a clear willingness to ease monetary policy at its next meeting in December. Therefore, now it is expected to cut its deposit rate by 10bp to minus 0.30% and keep the door...

Fed’s hands are tied by softer data and dovish market expectations

Oct 22, 2015 21:29 pm UTC| Commentary Central Banks

Which scenario is more likely? Sending a strong message in favour of a December liftoff could unwind the recent easing in financial conditions and the Fed is expected to take that risk. On the other hand, the FOMC may want...

Currency War Series

ECB's challenges into December: two BoJ meetings, one US employment report

Oct 22, 2015 21:16 pm UTC| Commentary Central Banks

A combination of an increase in asset purchases and a deposit rate cut is seen as the most likely outcome of the December meeting. And from that perspective, expectations management is likely to be one of the key...

FOMC Preview: Preparing for December in October

Oct 22, 2015 20:37 pm UTC| Commentary Central Banks

It is very unlikely that the FOMC will contemplate a hike at the upcoming gathering. More critically, officials will have to decide whether they still consider a December rate hike as likely and, if so, come up with a game...

ECB President Draghi sent a strong easing signal for the next meeting in December

Oct 22, 2015 20:24 pm UTC| Commentary Central Banks

ECB President Draghi sent a strong easing signal for the ECBs next meeting 3 December, when fresh projections are available, noting that, the degree of monetary policy accommodation will need to be re-examined at our...