Monetary Policy

Amid relatively light news, the US dollar is bid.  The euro is back to the lower end of its range, straddling the $1.1300 area.  The dollar is at an eight-day best against the yen near JPY119.50.  Falling commodity prices, a...

Minutes after the German finance ministry rejected Greece's offer, the ECB released its first record of its recent meeting.  The only item that rises to the level of a surprise might be that the ECB considered buying corporate bonds.   ...

Tomorrow is an important day for the ECB.  Yes, it does appear a Greek compromise is getting closer as the brink draws nearer.  Yes, the ECB is preparing to launch its new and more aggressive asset purchase program, just as...

The ECB's decision yesterday to no longer accept Greek government bonds or state-guaranteed paper, but approving Emergency Lending Assistance (ELA) by the national central bank remains a key talking point today. The timing of the decision, following the meeting between...

The Reserve Bank of Australia joined the chorus of central banks to ease policy.  The 25 bp rate cut was not a major surprise but it did catch many a bit off-guard as recent data and the pace of the...

When the Swiss National Bank lifted its cap on the franc, many thought they understood the message.  It had reached the end of its rope.  Some suggested the ownership structure of the SNB (owned by the Swiss cantons and individuals...

On 22nd January 2015, European Central Bank announced its plan to revive Eurozone’s stagnant economy agreeing to pump in €60 billion ($69 billion) per month thus grabbing headlines. Quantitative Easing (QE) is not an unfamiliar policy in the financial world....

The Federal Reserve’s two-day meeting concludes Wednesday.  To the extent the FOMC meeting is ever routine, this should be it.  Its forward guidance evolved at the end of last year.  The “considerable time” between the end of the asset purchase...

By allowing the European Central Bank (ECB) to start buying debt issued by its member states, the Eurozone is copying a strategy now associated with the earlier return to growth in the US and UK. Quantitative easing (QE) may not...

Today is all about the ECB.  The press claims to have access to people or documents that have the ECB buying 50 bln euros of bonds a month.  The duration of the program is not clear. There was a conflict...

1. What is the ECB going to do? The ECB is widely expected to announce that it will accelerate and broaden its efforts to expand its balance sheet. 1. What is the ECB going to do? The ECB is widely...

The European Central Bank meets tomorrow, and that is the main event of the week.  The price action today is dominated by other central banks.  The market is still struggling to find a new balance after the Swiss National Bank's...

Currency wars have been predicted for years. Outright monetary battles were last seen during the Great Depression of the 1930s, when governments competed to devalue their currencies to gain market advantage. But since the return to floating exchange rates in...

This will be an eventful week.  There are three major central bank meetings:  BOJ, BOC and ECB.  The ECB is widely expected to announce a wider bond-buying program that will include sovereign bonds.  January 25 Greece holds national elections in...

Saying the US dollar had a good week even though it lost 18.5% against the Swiss franc may be a bit like the old joke about asking Mrs. Lincoln, "besides that, how was the play?"The Swiss National Central Bank's unexpected...