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Policy makers speak: will markets listen?

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  • Foreign exchange markets seem set to provide entertainment today, in the wake of the Euro moving below 1.36 (ECB President Draghi doubtless swearing that he didn't touch the foreign exchange markets, they moved all on their own, and the Americans cannot possibly blame him).
  • We have two ECB speakers providing insight into the process behind the radical policy moves of last week (or so markets hope). Now that the initial thrill of excitement has died down, clarification on the benchmarks the ECB will use to judge their policy changes would be nice.
  • Broadbent of the Bank of England is speaking, and there is much that he could say on the state of the economy. UK labour market data is likely to show a further decline in the level of unemployment.
  • The World Bank revised down their growth estimates for several economies yesterday - they are broadly consensus (everyone is these days). They did warn of the risks of a Chinese hard landing - we put that risk at 15% for next year (based on a housing correction).

Listen to the audio version of this briefing.