Category Archives: ECB

German judges refer ECB’s bond-buying to European Court

Germany’s Constitutional Court will refer a complaint against the European Central Bank’s flagship “unlimited”  bond-buying plan to the European Court, removing the prospect of it curbing the program.

The court said on Friday there was good reason to think the scheme “exceeds the European Central Bank’s monetary policy mandate and thus infringes the powers of the member states, and that it violates the prohibition of monetary financing of the budget”.

The ECB’s Outright Monetary Transactions (OMT) programme, announced by ECB chief Mario Draghi in September 2012 at the height of the sovereign debt crisis, is widely credited with stabilising the euro.

Euro/Usd drop on this news

screenshot.24

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    None of my tickers are showing much action today. Yen crosses are down modestly but nothing compared to the volatility we’ve seen over the past few days. The euro tried the upside a few times today and will close out the day with some small gains but tomorrow the ECB…
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    Runners have target times, golfers judge themselves by their swing, while Mario Draghi watches a technical measure of inflation expectations used by financial markets. Just one problem: it suggests the European Central Bank president is not achieving his objective – and that markets’ fears of eurozone deflation are mounting. Since…
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ECB Webcast of the press conference 6 February 2014

Press conference following the meeting of the Governing Council of the European Central Bank on 6 February 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET:

  • Introductory statement by Mario Draghi, President of the ECB.
  • Question and answer session. Registered journalists pose questions to Mario Draghi, President of the ECB, and to Vítor Constâncio, Vice-President of the ECB.

 

Watch it here :: ECB Webcast of the press conference 6 February 2014

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    Press conference following the meeting of the Governing Council of the European Central Bank on 6 March 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario…
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ECB and BOE interest rates remain on hold

UK-ECB.

ECB and BOE interest rates remain on hold.

ECB keep at 0.25 %

UK keep at 0.5%

The press conference  with ECB President – Mario Draghi – and Vice President -Vito Constâncio – will tells us more

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    Press conference following the meeting of the Governing Council of the European Central Bank on 6 March 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario…
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    Press conference following the meeting of the Governing Council of the European Central Bank on 6 February 2014 at its premises in Frankfurt am Main, Germany, starting at 2:30 p.m. CET: Introductory statement by Mario Draghi, President of the ECB. Question and answer session. Registered journalists pose questions to Mario Draghi, President…
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    Germany's Constitutional Court will refer a complaint against the European Central Bank's flagship "unlimited"  bond-buying plan to the European Court, removing the prospect of it curbing the program. The court said on Friday there was good reason to think the scheme "exceeds the European Central Bank's monetary policy mandate and thus…
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Tomorrow the ECB decision will surely bring some volatility.

None of my tickers are showing much action today. Yen crosses are down modestly but nothing compared to the volatility we’ve seen over the past few days.

FX moves

The euro tried the upside a few times today and will close out the day with some small gains but tomorrow the ECB decision will surely bring some volatility.

Draghi & Co can opt to do nothing or take action in three different ways:

  1. A 10-15 basis point cut in the main refi rate
  2. Switching to unsterilized bond purchases (QE)
  3. Negative deposit rates

The legality of option #2 is questionable. Any of those move would spark euro selling, partially because it implies more future action.

Ten days ago, the market was comfortable with a wait-and-see decision but soft inflation readings have put pressure on the ECB to act.

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    Germany's Constitutional Court will refer a complaint against the European Central Bank's flagship "unlimited"  bond-buying plan to the European Court, removing the prospect of it curbing the program. The court said on Friday there was good reason to think the scheme "exceeds the European Central Bank's monetary policy mandate and thus…
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