European Central Bank (ECB)

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The man who shocked us all last week calling the surprise Greek Referendum, the then Greek Finance Minister Yanis Varoufakis' promptly resigned this morning despite the vote coming in as a resounding ‘No’ to accepting their creditors’ reform proposals. He actually initially announced that he would only resign should the Greek public vote ‘Yes’ thus the result and his departure leave analysts and everyone else alike even more ‘in the dark’ a…

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German Finance Minister Wolfgang Schaeuble issued a statement late last night in New York criticising Greece for backing out of agreed bailout reforms. He said that ‘nobody expects that there will be a solution’ to Greece’s drama by next Friday’s ECB meeting on 24th April 2015; this fully contradicts with the Greek Finance Minister Yanis Varoufakis’ comments last week when he said he was ‘very confident’ a solution would be reached. Greek offic…

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The Eurozone’s single currency seems to be heading towards parity against the US dollar, starting the year above 1.20, now trading 1.0650. In March 2014 EURUSD traded just shy of the 1.40 mark, the story is driven by the divergence in economic situations between the US and the European periphery. Following Draghi’s announcement of QE the sentiment towards the Eurozone has turned sour. Greece’s potential exit from the single currency has unnerved investors with the cur…

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On Thursday ECB President Draghi announced his “Big Bazooka” the ECB quantitative easing programme (QE). The central bank announced a slightly larger bond-buying programme of €60 billion per month into 2016. This is a significant amount of “money printing” which is an attempt to stimulate growth within the Eurozone. The announcement had been widely priced in following tactical leaks to the press prior to the event. EURUSD Since March 2014 the Euro aga…

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Wednesday 1st October saw European equities moving sideways while the Euro sells off sharply as a result of yet weaker macro data highlighting further growth challenges in the Eurozone, a point the ECB will more than likely address at its meeting tomorrow. European Manufacturing PMI slipped to 50.3 compared to a previous estimate of 50.5 creating worrying signs for the region’s Manufacturing Sector as orders appear to be diminishing for the first time since June 2013 leading to m…

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EURCHF is currently trading at 1.2063, its lowest level since December 2012 and as we all know the Swiss Franc is currently pegged to the Euro. Following legislation by the Swiss National Bank (SNB) in 2011 this particular currency pair has been trading in a fairly tight range, they have expressed their desire not to allow CHF to strengthen too much against its more influential neighbour thus creating a unique situation of, in effect, placing a price floor of 1.20. In the past 18…

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It’s the 4th July, which is a public holiday in the US, which has left the European/US trading sessions subdued with minimal data points. On Thursday there was the unusual occurrence of a Thursday release for the US employment report, Non-Farm Payrolls, released alongside, initial jobless claims, continuing jobless claims and Draghi’s ECB press conference. US equity markets were buoyed by the strong employment figures, with the headline number of jobs added being +288,000…

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The latest rate decision from the European Central Bank will be announced today at 12:45 GMT. This is the most eagerly awaited rate decision, certainly for quite a few months, possibly ever, especially after President Mario Draghi hinted in their meeting last month that they would act today. Many economists are expecting an unveiling of a package of measures but there are some discrepancies over the exact ones to be used. Since the May meeting, pressure has only increased on President…

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*In the US it is a national holiday today, Independence day. This will affect the trading hours of certain markets with us remaining closed for the session, please see your client emails for further details* The markets seem relatively subdued this morning ahead of BoE and ECB announcements, with the US closed for Independence Day volumes are likely to be lower. Bank of England Mark Carney began his term as the first foreign national to become the Governor at the Bank of En…

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European Central Bank Meeting Thursday 2nd May 2013 The European Central Bank (ECB) as expected has cut interest rates by 25bps to 0.50%. -44 of the 70 economists surveyed expected the ECB to cut by 25bps -1 economist predicted a 50bps cut -Standard Chartered, CitiGroup, Credit Suisse, Commerzbank, JPMorgan, Goldman Sachs, Barclays and Deutsche all expected the ECB to cut rates by 25bps The macro data coming from the Eurozone has been mixed, with a two tiered No…

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The US Federal Reserve hinted that it may accelerate their current quantitative easing programme. The FOMC said that they were “prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labour market or inflation changes.” The disappointing data from the US and stubbornly high unemployment is a concern to the Fed, citing the fiscal policy from Congress responsible for restraining economic growth. Facebook re…

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Uncertainty is something that investors will attempt to avoid at all costs. Political instability, verging on a nuclear war could cause a major shift of assets into safe havens. If the current words escalate, there is a real threat of something far more worrying to occur. North Korea has increased tensions, by threatening the US with a nuclear strike. The US realises that this the state poses potential danger and has deployed a missile launcher in Guam - Guardian More than half of all…

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The south east of England including London has been covered with snow since Friday, though a relatively small amount (4-5 inches) it has caused travel chaos. Analysts have been quick to highlight the weather disruption as an increased chance of the UK entering a double-dip recession. There have been widespread cancellations across both airport and train networks, as the UK struggles to cope with snowfall. Today is also Martin Luther King Day in the United States, which means that the…

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Fitch affirms Italy at A- with a negative outlook Insurers are conducting a war of words with regulators trying to prevent a repeat of AIG’s collapse –Financial Times Commodity trading giant Trafigura mulls London float of its subsidiary Puma BP is looking to change the terms of its contract with the Iraq government for the Rumaila oilfield, as it seeks to scale back its production target – The Daily Telegraph The coalition is pressing ahead with pla…

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