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Throwing Euros around like confetti

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The ECB's Draghi yesterday pledged to continue to (metaphorically) stand on the roof of the ECB building and shower Euro bank notes down upon passers-by. Quantitative policy, in short, is here to stay, because it is working (a dubious claim given how short the policy period has been).
  • Greece occupied a fair amount of time at the ECB press conference with the bank prepared to continue to provide liquidity while Greece remains solvent. Of course without ECB liquidity and in the wake of bank deposit withdrawals the Greek banks would require more serious policies (like capital controls).
  • The US industrial production data predictably fell on warm weather and weaker oil. However the manufacturing production was notably weak in spite of an auto sector revival. This weakness did not taint the Fed's Beige Book, however, which gave a nod to the weather but was otherwise quite positive..
  • There are US initial jobless claims figures (last week's four week moving average hit a fifteen year low), and the Philly Fed sentiment index (as ever, sentiment needs to be treated with some caution). A grand total of four Fed speakers are set to crowd the agenda.