-
FX weekly: Lagarde better practice her Rhine dancing
ECB edges closer to BoJ’ing their communication entirely and they may even opt for open-ended QE. Markets are free to speculate in cutting, buying and tiering from ECB, which makes a long EUR/USD position a hard sell unless Powell goes really big. The more it changes, the more it stays the same. Some central banks are planning to lower rates (Fed), others are going deeper into negative territory (ECB), others are beginning to work on unconventional policy (RBNZ), platforms (ASX) are testing out negative rates, IMF researchers are working on methods to allow for substantially negative rates, all the while some ... (full story)