Monday, October 20, 2014

Some ECB officials reassure the markets that QE is coming

•     After all the drama of last week, markets finish little changed
–    US 10yr bond ends week @ 2.20%, down from 2.28% a week earlier
–    DXY index down 0.2%, not much considering the volatility of the week. USD gains on the week vs NOK, CAD, JPY and GBP
•     Some ECB officials reassure the markets that QE is coming
–    Coeure said purchases will start “within the next days”
–    Weidmann sees “a shift to QE philosophy,” although he’s not happy about it
–    Also, Greek markets calmed down
•     Journalists, Fed officials confirm Fed likely to stop QE on schedule
•     Today:
–    Eurozone: German PPI expected to fall at accelerating pace = EUR-negative
–    Canada:  wholesale trade sales for August
•     Rest of week
–    Tuesday:  China Q3 GDP, retail sales and industrial production for Sep expected to slow = AUD-negative? Minutes of latest RBA meeting
–    Wednesday:  Bank of Canada expected to remain on hold at neutral

–    Thursday:  Norges Bank meeting (remain on hold), global PMIs

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