Will Draghi Continue To Adopt A Dovish Stance?

Published 04/15/2015, 08:25 AM
Updated 05/14/2017, 06:45 AM

Market movers today

We do not foresee new signals at today's ECB meeting and we expect ECB president Mario Draghi to continue to adopt a dovish stance. This will not have much market impact in our view, as yields are already very low across the curve. We look for Draghi to reiterate that risks to the economic outlook remain on the downside and that the ECB intends to carry out QE purchases until the end of September 2016. Draghi will likely get questions on the issue of whether there are enough bonds to buy and whether the ECB is creating distortions in bond markets.

In the US Fed's Bullard (non-voter, hawkish) speaks and on the US data front industrial production, Empire Index and NAHB housing index are due for release. The Empire index will be the most interesting as it is the first business survey released for April. After a sharp dip in late 2014 it has moved a bit sideways in the first months of 2015. Given the uncertainty over the expected growth rebound the number will attract some attention.

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