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...

ECB meeting, a currency war of words and inaction

Oct 22, 2015 17:57 pm UTC| Commentary Central Banks

ECB President Draghi was more dovish than expected, resulting in a large drop in the EURUSD. Specifically, the Governing Council re-inserted the possibility of cutting the deposit rate into the ECBs toolbox, which is in...

ECB to cut the deposit rate further

Oct 22, 2015 17:23 pm UTC| Commentary Central Banks

Draghi had a very dovish tone today and surprisingly opened the door for a deposit rate cut. Based on this, economists now expect the ECB to cut the deposit rate by 10bp at the meeting in December, to keep the door open...

Dovish ECB to keep Danish central bank on hold

Oct 22, 2015 15:37 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, economists now expect it to cut its deposit rate by 10bp to minus 0.30% and keep the...