Thursday, April 16, 2015

Draghi is dovish - Protestor jumps Mario during press conference

     Draghi is dovish
    No problems in implementing QE, no intention to “taper” or make any changes at least until the initial ending period of Sep. 2016; sees real EUR interest rates moving lower
    On the other hand, not planning to cut deposit rate either
Mario Draghi was attacked by a “Ninja” ECB fighter who obviously was fed up with ECB’s indecisive action or inaction

     Bank of Canada is optimistic; little change of further easing
    Points to stronger non-energy exports, increasing investment, improving labor market
    Output gap will be back in trend later this year = no more need to ease any time soon

     Oil soars on relatively small inventory build, gasoline drawdown
    1.3mn barrel increase compares to average 6.9mn barrels previously this year
    Crude oil production falls slightly, gasoline inventories fall 2mn barrels – unusual for this time of year
    Oil prices soar, oil currencies soar = NOK was best-performing G10 currency

     Australian unemployment unexpectedly falls to 6.1% from 6.3%
    Even as participation rate rises; both part- and full-time employment beat forecasts
    AUD up sharply

     Today:
    US: Housing starts & building permits for March; starts expected to rise after February’s unseasonably cold weather stalled building, but permits expected to fall. Consistent with improving housing market following big rise in NAHB index

    Speakers:  ECB’s Constancio, Fed Presidents Lockhart, Rosengren & Mester and Vice Chair Fischer

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