Forex news from the European trading session – 15 October 2021
Headlines:
Markets:
– GBP leads, JPY lags on the day
– European equities higher; S&P 500 futures up 0.4%

Remarks by the Chinese central bank
Well, at least they’re not using the T-word but it is rather implied. In any case, with the shift to ‚common prosperity‘ focus and the power crunch hitting, China is likely to maintain more easy policy in order to support the economic recovery from the pandemic still.

„Traffic light“ coalition impending for Germany
Reuters reports with the above headline, citing sources familiar with the matter. This was the expected outcome after the election but it is taking a while to sort out. Some context on what this could mean for euro area assets .

Nikkei reports on the matter
This was also rumoured back in September already but I reckon we’re nearing an official announcement in the days ahead, so there is a rerun via local media.

PBOC reaffirms that Evergrande isn’t going to pose a major threat to the Chinese financial system
They are also urging developers and shareholders to fulfil debt obligations and have asked banks to keep stable, orderly loans to the real estate sector.

Forex news from the European trading session – 14 October 2021
Headlines:
Markets:
– NZD leads, JPY lags on the day
– European equities higher; S&P 500 futures up 0.8%

Remarks by ECB policymaker, Olli Rehn
here
It’s a bit of a mixed message considering that the broader stance is that inflation is more subdued and is some ways off reaching 2% in the medium-term considering that the recent surge is all supposed to be temporary.

Remarks by ECB president, Christine Lagarde
– Price pressures could become more persistent if supply bottlenecks last longer
– Or if wages rise more than currently anticipated
Is anyone else sick of all the transitory talk yet? The ECB is pretty much put between a rock and a hard place here as they can’t acknowledge more sticky inflation

BOE policymaker, Silvana Tenreyro, remarks
should be
In any case, the BOE has already started to pivot on this as per their latest policy meeting so this isn’t anything too new in my view. But it does reaffirm that policymakers aren’t as certain about the whole inflation debate as they were in the summer.

The dollar is down to the lows for the day currently
It’s all about the ebb and flow this week and as much as the dollar has run hot in the past few weeks, things just aren’t going the way for the greenback at the moment.