Oil prices continue to collapse

•     Draghi the Dove sends EUR lower, boosts USD

–    Reaffirmed that ECB’s only goal is price stability, meaning it has to do whatever is necessary to prevent deflation too

–    ECB stands ready to do more unconventional measures if necessary

–    Ready to alter the size and composition of its balance sheet (= QE)

–    Moving into more active control of its  balance sheet

–    These are the kind of comments people wanted to hear last week

•     How long is a “considerable time?”

•      Bullard says somewhere between 2 months and one year, says market is about right in terms of rate hikes

•      Williams says mid-2015, but depends on the data

•     Oil prices continue to collapse

–    Should exert downward pressure on inflation

–    Should boost consumer sentiment

•     Today:

–    UK:  Construction output for August expected to accelerate

–    Canada:  unemployment for Sep expected to stay at 7%

–    US: Four FOMC members speak (Plosser, George, Richard Fisher and Lacker)