Expansionary monetary policy impact euro quite significantly

Jul 23, 2015 08:40 am UTC| Commentary

The exchange rate channel is probably the fastest to bear fruit as the depreciation of the euro started well before QE was actually announced. The euro, both versus the dollar and on a trade-weighted basis, peaked when...

ECB asset purchases to boost the balance sheet by €1trn by the end of 2016

Jul 23, 2015 07:55 am UTC| Commentary

A first set of indicators focuses on the actual tools deployed by the ECB, i.e, asset purchases and their impact on the balance sheet of the Eurosystem. The GC considered that the introduction of the PSPP presented in...

Euro area current account surplus likely to improve

Jul 23, 2015 07:51 am UTC| Commentary

The Euro area export growth slowed down to 0.8% q/q growth in Q1. The economys exports to China declined by -4% q/q, and to Russia fallen by more than 30% so far in 2015.The effects of a weaker euro exchange rate are...

Little evidence of contagion from Greece to Spain

Jul 23, 2015 07:43 am UTC| Commentary

One of the most important aspects of the ongoing Greek crisis has been the lack of meaningful contagion to Spain and other EA economies. The presence of the radical left party Podemos could have been a channel of crisis...

Euro area export growth likely to robust in H2

Jul 23, 2015 07:39 am UTC| Commentary

Euro area export growth slowed further in Q1 (0.8% q/q after 1.0% in Q4) reflecting a slump in shipments to several major emerging markets and OPEC countries. Notably, exports to China declined significantly (-4% q/q)...

Improving financial conditions and housing markets to support Spain's Growth

Jul 23, 2015 07:37 am UTC| Commentary

Improving financing and credit conditions will remain supportive of Spains growth. SME funding and new credit to households continue to grow.The better lending dynamics in part reflect the improving asset quality of banks,...

USD-CNY to hold steady at 6.2095

Jul 23, 2015 07:23 am UTC| Commentary

China wants its currency to be included in the special drawing rights basket.There were reports suggesting that the IMF has raised concerns about the financial markets accessibility to foreign investors prior to the stock...