Bank of America Merrill Lynch: Draghi boosts sentiment "Risk assets should outperform over the next 6 weeks as markets realize they may have overreacted in December. Still, the risk is that too much focus on the next meeting may lead to possible disappointment once again and continued volatility." the source
FED, ECB, Greece: "The Greek Referendum will drive headlines for the near-term. We believe that divergence of monetary policies is a more powerful EUR driver than Greek risks. In this context, the timing of the first Fed rate hike (September is our call) and the ECB’s tone (the market misread the ECB’s message to get used to volatility) are more important for the euro than Greek headlines. Whilst Greek headlines and deadlines are clearly ...
If you get stuck paying out huge amounts to anyone, you want to ease the burden by writing it off. Bank of America may be smarting over the historic $17 billion legal settlement it reached over soured mortgage securities. Still, it should be mollified that it’s getting a hefty tax write-off. How, you might ask? It got around the Department of Jusitce’s recent policy of nixing tax deductions. See DOJ Allows Bank of America to Deduct $12 Billion of $17 Billion Settlement. Not everyone ...
Forex Weekly Outlook May 19-23 Rate decision in Japan, inflation data in the UK and Canada, FOMC Meeting Minutes, Unemployment Claims, German Ifo Business Climate and US housing data are the main events on our list. Here is an outlook on the main market-movers for this week. Last week, major US figures came out above expectations; Annual inflation reached 2%, as expected and the monthly CPI edged up to 0.3%. Meanwhile, the annual core inflation beat forecasts ...
US Dollar Rally Will Stall Without a Spark Fundamental Forecast for Dollar: Neutral Though US Treasury yields were in retreat this past week, the move does not likely reflect fading Fed expectations There is limited impetus from the docket for a big ‘risk’ breakout this week, but a surge in sentiment doesn’t require data The US Dollar managed to turn a close call test of 14-month lows into an impressive rebound ...
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