26 April 2012 strategist 06: 33 GMT
Talking Points
Dollar recovered as markets Digest Post - FOMC Bernanke comment Euro may turn to low German CPI Drop Stokes ECB rate Cut Outlook NZ Dollar Gains after RBNZ rate decision, the markets dismiss Bollard threatens the US Dollar (ticker: USDollar) decreased during the night, with the markets seeming to take the comments of the Chairman of the Fed Chairman Ben Bernanke, saying that officials were "ready to do more" to help the economy if growth has hesitated, singling out additional QE as still "on the table". Taken in isolation, the statement seems the likelihood of a new enlargement of the balance, weighing on the greenback in return of the fears of dilution of the project. This instinctive reaction does not appear to have staying power, however, that the markets digest the rest of the comment of Bernanke.
Keep there "on the table", it makes sense. After all, it would be unreasonable to expect the Fed to do nothing if growth were to falter again. During this time, Bernanke made it clear that purchases of additional assets not were not favored, saying it would be "very foolish" to allow inflation higher for the sake of reducing unemployment. The head of the Central Bank also added that the promise of low rates to late 2014 was contingent on economic data and subject to revision, if conditions were to justify (which probably means the rate can increase faster that the Fed is currently awaiting). Coupled with the forecast of growth, employment and inflation level, this seems difficult to suggest an additional stimulus in the pipeline at least in the short term.
The New Zealand Dollar exceeded after the RBNZ unchanged interest as expected. The Central Bank Governor Alan Bollard said that the domestic economy showed signs of recovery and predicted growth would seek to steam as efforts to rebuild Canterbury following earthquakes that rocked the area in February and June of last year. Here too however, the markets seem to be just half of the story, leaving room for a reversal. Bollard expressly warned that if Kiwi remains strong despite the decline in the prices of raw materials, the RBNZ will need to "reassess" its position, giving the statement a tone typically Dove.
German Consumer Price Index figures in headline economic calendar European hours, with the expectations for the annual inflation rate down to 2% in April, marking the reading below within 14 months. Taken against the backdrop of the comment modestly Dove of the President of the ECB yesterday Draghi and deeply disappointing number of PMI for the eurozone released earlier in the week, the result can weigh on the Euro as expectations build rates.
Draghi said inflation risks were overall balanced and noted that the ECB is ready to do what was required in both cases. Whereas the ECB Chief also predicted that price growth will remain above 2% this year, falling on the German CPI reading outright level may begin to speculation of the drive as the Central Bank must relieve more policy.
Asia session: What happened
Reserve Bank of New Zealand rate decision
At the national level (MAR) consumer confidence
Conference Board Leading Index (FEB)
DEWR skilled vacancies Internet (MoM) (MAR)
The industry index of activity (MoM) (FEB)
Session of the euro: what to expect
(APR) Italian business confidence
BBA loans for the purchase of the House (MAR)
Indicator of the eurozone (APR)
Euro-Zone economic confidence (APR)
Confidence of consumers in the euro area (APR F)
Industrial confidence in the eurozone (APR)
Eurozone Services Trust (APR)
German Consumer Price Index (MoM) (APR, P)
German Consumer Price Index (YoY) (APR, P)
German CPI - EU harmonized (MoM) (APR, P)
German CPI - EU harmonized (YoY) (APR, P)
Critical levels
Talking Points
Dollar recovered as markets Digest Post - FOMC Bernanke comment Euro may turn to low German CPI Drop Stokes ECB rate Cut Outlook NZ Dollar Gains after RBNZ rate decision, the markets dismiss Bollard threatens the US Dollar (ticker: USDollar) decreased during the night, with the markets seeming to take the comments of the Chairman of the Fed Chairman Ben Bernanke, saying that officials were "ready to do more" to help the economy if growth has hesitated, singling out additional QE as still "on the table". Taken in isolation, the statement seems the likelihood of a new enlargement of the balance, weighing on the greenback in return of the fears of dilution of the project. This instinctive reaction does not appear to have staying power, however, that the markets digest the rest of the comment of Bernanke.
Keep there "on the table", it makes sense. After all, it would be unreasonable to expect the Fed to do nothing if growth were to falter again. During this time, Bernanke made it clear that purchases of additional assets not were not favored, saying it would be "very foolish" to allow inflation higher for the sake of reducing unemployment. The head of the Central Bank also added that the promise of low rates to late 2014 was contingent on economic data and subject to revision, if conditions were to justify (which probably means the rate can increase faster that the Fed is currently awaiting). Coupled with the forecast of growth, employment and inflation level, this seems difficult to suggest an additional stimulus in the pipeline at least in the short term.
The New Zealand Dollar exceeded after the RBNZ unchanged interest as expected. The Central Bank Governor Alan Bollard said that the domestic economy showed signs of recovery and predicted growth would seek to steam as efforts to rebuild Canterbury following earthquakes that rocked the area in February and June of last year. Here too however, the markets seem to be just half of the story, leaving room for a reversal. Bollard expressly warned that if Kiwi remains strong despite the decline in the prices of raw materials, the RBNZ will need to "reassess" its position, giving the statement a tone typically Dove.
German Consumer Price Index figures in headline economic calendar European hours, with the expectations for the annual inflation rate down to 2% in April, marking the reading below within 14 months. Taken against the backdrop of the comment modestly Dove of the President of the ECB yesterday Draghi and deeply disappointing number of PMI for the eurozone released earlier in the week, the result can weigh on the Euro as expectations build rates.
Draghi said inflation risks were overall balanced and noted that the ECB is ready to do what was required in both cases. Whereas the ECB Chief also predicted that price growth will remain above 2% this year, falling on the German CPI reading outright level may begin to speculation of the drive as the Central Bank must relieve more policy.
Asia session: What happened
Reserve Bank of New Zealand rate decision
At the national level (MAR) consumer confidence
Conference Board Leading Index (FEB)
DEWR skilled vacancies Internet (MoM) (MAR)
The industry index of activity (MoM) (FEB)
Session of the euro: what to expect
(APR) Italian business confidence
BBA loans for the purchase of the House (MAR)
Indicator of the eurozone (APR)
Euro-Zone economic confidence (APR)
Confidence of consumers in the euro area (APR F)
Industrial confidence in the eurozone (APR)
Eurozone Services Trust (APR)
German Consumer Price Index (MoM) (APR, P)
German Consumer Price Index (YoY) (APR, P)
German CPI - EU harmonized (MoM) (APR, P)
German CPI - EU harmonized (YoY) (APR, P)
Critical levels
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