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29 Dec 2014
Divergences between major economies - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted the divergences that are driving the majors.
Key Quotes:
"The divergence theme is not just based on favorable developments in the US, but more accommodative policies in Europe and Japan”.
“Expectations that the ECB will expand the assets it is purchasing to include sovereign bonds are widespread, and have helped push many European bond yields to record lows (10-year benchmarks)."
"The money supply and lending report is arguably more important than the final manufacturing PMI (January 2, flash 50.6). It is slowly improving, and this is important for the second phase of the TLTRO program which is linked to new non-mortgage lending."
Key Quotes:
"The divergence theme is not just based on favorable developments in the US, but more accommodative policies in Europe and Japan”.
“Expectations that the ECB will expand the assets it is purchasing to include sovereign bonds are widespread, and have helped push many European bond yields to record lows (10-year benchmarks)."
"The money supply and lending report is arguably more important than the final manufacturing PMI (January 2, flash 50.6). It is slowly improving, and this is important for the second phase of the TLTRO program which is linked to new non-mortgage lending."