Comments from Draghi – Monetary policy is very accommodative – The drivers of the economic recovery are still in place, consumption continues to grow, driven by increases in disposable income The euro is down to 1.1339 from 1.1375 on the shift to
Euro lower on the headline The euro is lower on the tilt downward in the balance of risks. This sounds like it’s setting up for a push-out in forward guidance (through the summer) in the next meeting or two.
ECB sources from Reuters The ECB statement continued to say risks were balanced but trading said they were ’tilting to the downside.’ That comment is what undercut the euro today.
Here are the upcoming meetings The Bank of England is next week and the Fed is December 19 but then calendar goes quiet from there. Here’s what’s coming up in 2019. It’s a chart to save via
There will be a reversion to the capital key This is more important for bonds than FX but a reversion to the capital key means less buying of Italian bonds over time. But it’s all going to be moving very slowly.
Comment from Yi Gang The PBOC’s Yi says monetary policy should be relatively loose as China’s economy is under downward pressure but that policy cannot be too loose.
European Central Bank monetary policy decision – 13 December 2018 – decision – Main refinancing rate 0.00% – Marginal lending facility 0.25% – Deposit facility -0.40%
up on calls from AMP Chief Economist Shane Oliver Bloomberg have a piece – Sydney and Melbourne prices will drop a further 10% in 2019 – peak-to-trough fall 20% Bloomberg link above
Wow, snipe from Former Dallas Fed President Richard Fisher Speaking about Minneapolis Fed President Neel Kashkari referred to Kashkari as – “Mr. Kardashian or whatever you call him”
Earlier posts on the consistently much-watched webcast by Jeffrey Gundlach earlier: Posting these now via and as a bit of a recap on what has become a slightly more sedate Asia session: