Trump on Fox Business
- Says both 'very talented'
- Says he likes Yellen 'a lot'
- Taylor and Powell together 'in my thinking' but adds 'I have a couple of other things in my thinking'
Forgotten in the talk about the race for the Fed chair is that there is also a race for the Vice-Chair and someone in the top-5 will likely be offered the role.
"She'll be back" at the White House for a second interview, evidently.
She was there for an interview yesterday.
Is she back to get good news, or bad news? Or does Trump want to know more?
The ECB decision on Thursday is a highlight next week
BNP Paribas FX Strategy Research discusses the EUR outlook going into next week's ECB meeting
The ECB takes center stage next week with its scheduled meeting on Thursday when it is widely expected to announce plans for asset purchases beyond December.
Yellen speaks today after the market closes
The usual thinking is that Yellen wouldn't say anything market moving when the market is closed.
History shows that's not the case. I can think of at least two occasions where she has spoken late Friday or after the market closed and made some comments that moved the dollar.
ECB governing council member and Austrian CB head on the wires 20 Oct
- some thing of a save haven like the swiss franc
- we are watching the effect of euro on inflation
EURUSD still hanging around 1.1800 while EURGBP finds the demand at 0.8980 I highlighted
BOJ governor Kuroda with scheduled speech 20 Oct
Time to get the Kuroda speech template out again.. Not going to differ.
- weakness on price front is continuing
Yep, you'll be right one day perhaps Mr K.
In Open Market Operations the People's Bank of China
Net OMO injection 60bn yuan for today. For the week, net 500bn yuan injection (the biggest week for injections via RRs since the middle of January this year)
TD on the Australian data yesterday (ICYMI:
Australia September Employment Change: +19.8K (expected 15.0K)
- Surely RBA Governor Lowe) must be convinced by now that the labour market is more robust by the day!
Previous governor of the Reserve Bank of Australia Glenn Stevens in the Australian press today
(article came out overnight)
- An unexpected pick-up in inflation measures could see "markets flip from their current scepticism" that central banks couldn't hit their targets "to worries about them being exceeded"
Article is here for more (may be gated):
GBPUSD falls on comments.
The GBPUSD has moved a bit lower on the comments. Looking at the hourly chart the pair traded to NY session lows at 1.3153. The 61.8% of the move up from the October 6th low comes in at 1.3145. A better support target on continued weakness was near where the price bottomed today. The 1.3121 area has been a swing level (both a floor and a ceiling) going back to October 5th. Stay above more bullish. Move below, more bearish.
Yellen will be Trump's last interview for the Fed chair
Given how he pretty much does whatever the last person he talked to says, I'm assuming she will be reappointed. The problem is that I'm not sure I can handle another four years of her blandness and Brooklyn accent.
ECB governing council member Nowotny speaking to Der Standard now published 19 Oct
- decision how to proceed must be made in Oct
- sees arguments for slowing purchases
Reuters reporting the comments from Austria's CB gov.
PBOC governor Zhou's response to questioning 19 Oct
Reuters reporting comments after an earlier story from them in which they had been told by sources that Zhou would likely retire around the time of the annual session of parliament next March.
People's Bank of China Governor Zhou, more:
Yeah ... reading these indicates that after the Congress there will be some tightening in policy, and not just monetary policy. It won't be drastic change, but policy will not be so stimulative as it has been.
People's Bank of China Governor Zhou
- yuan trading band expansion is not a current focus
- yuan trading band not too important
Onshore yuan (CNY) has a mid-point (the reference rate) set each day by the PBOC. The Bank allow it trade plus or minus 2% from this central rate. From time to time rumours sweep through that the band will be widened to 3%, which would seem to be next step. Zhou tipping a bucket of cold water on that idea.
These via the Australian press (Australian Financial Review, )
link here for more
Craig James, senior economist at CommSec
Stephen Walters, chief economist at the Australian Institute of Company Directors