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Central bankers on the offensive

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Central bankers are advancing on financial markets on all sides today. The US Federal Reserve's Dudley and Evans offered contrasting views of the necessity of tightening in comments yesterday. Today, there are three speakers, including Vice-Chair Fischer. 
  • Another central banker with a North American accent, Carney of the Bank of England, is also scheduled to speak today. The announcement of the UK government's legislative agenda tomorrow may constrain policy guidance (the ink of the Queen's speech is drying on the goat skin vellum right now).
  • Middle East tensions between Russia and the US have not, so far, caused much disturbance for investors with the oil price relatively calm. The personalities involved and the ongoing US investigation of the Russian question are complications, but markets are unlikely to be too concerned.
  • German producer price inflation – a barometer of corporate pricing power at a time of full employment – is due. US first quarter current account data has become a politicized indicator, and as such may attract more investor and Twitter attention than it normally merits.