Politicians, industry groups and research bodies are all uniting to call on the ECB for policy action. |
The Canadian currency is still performing very well especially in the face of a slightly disappointing retail number. The Bank of Canada's meeting next week will be the focus. A rate hike next week is most likely. |
The dollar still looks like a good buy. People are going to need to adjust to more rate increases from the Fed, so that's going to give the dollar a push. |
The ECB is in a no-win situation. If it cuts rates it will be accused of taking risks with inflation, and if it doesn't cut rates, it will be accused of not caring about growth. It's boxed in. |
The ECB needs to raise interest rates to stop a big slide in the euro, ... We doubt the German economy will slow down as is predicted. |
The ECB needs to raise interest rates to stop a big slide in the euro. We doubt the German economy will slow down as is predicted. |
The euro will strengthen against the dollar and should hit parity some time in the summer, ... The euro zone is experiencing robust growth, but globally the markets seem to like the dollar at the moment. |
The Fed has been on 'autopilot' with its monetary tightening so that even bouts of weaker data, such as we saw after hurricane Katrina, failed to divert the Fed off course. But now, following the minutes of the December meeting, it is clear that policy will become more data dependent. |
The focus next year will again be on the Fed -- we expect Fed funds to go up to 5 per cent, higher than levels priced into the markets. |
The market will be interested to see whether any members expressed opinions about the likely end of the cycle. |
The market, looking for a move down to 85 in the Michigan data, is maybe not pricing in the full risk of a significant slow-down...I think the dollar is vulnerable to a weaker number. |
There are other countries at the G20 that are aggrieved at the weakness of their currency against the dollar - Australia for one. |
There is speculation in the market that a Dutch company is selling euros. |
There may be some help for the euro if the European Central Bank raises interest rates, |
There may be some help for the euro if the European Central Bank raises interest rates. |