Review Brokers
No Result
View All Result
Monday, October 2, 2023
  • Login
  • Home
    • Forex Advertising
    • Economic Calendar
    • Contact Us
  • Forex Brokers
    • Best Broker 2023
  • Education
    • Forex Trading Strategies
    • Forex Trading Indicators
    • Forex/CFDs/Cryptos News
    • Promotional Content
  • Forex Promotions
    • Best Promotions
    • Affiliate Program
    • Forex No Deposit Bonus
    • Forex Demo Contest
    • Forex Rebate (Cashback)
    • Forex Live Contest
    • Forex Deposit Bonus
    • Other Promotions
  • Expert Advisors
    • Expert Advisors Price
  • Rebate Service
    • Terms and Conditions of Rebate Services
  • Home
    • Forex Advertising
    • Economic Calendar
    • Contact Us
  • Forex Brokers
    • Best Broker 2023
  • Education
    • Forex Trading Strategies
    • Forex Trading Indicators
    • Forex/CFDs/Cryptos News
    • Promotional Content
  • Forex Promotions
    • Best Promotions
    • Affiliate Program
    • Forex No Deposit Bonus
    • Forex Demo Contest
    • Forex Rebate (Cashback)
    • Forex Live Contest
    • Forex Deposit Bonus
    • Other Promotions
  • Expert Advisors
    • Expert Advisors Price
  • Rebate Service
    • Terms and Conditions of Rebate Services
No Result
View All Result
Review Brokers
No Result
View All Result

Rates spark: Wider and flatter

Admin by Admin
July 22, 2022
in Forex/CFDs/Cryptos News
0
MarketNews
0
SHARES
1
VIEWS

(ING Global Economics Team)

Curves flattened in reaction to the European Central Bank hiking by 50bp already now. And after the ECB comes the Fed, which is set to deliver another sizeable hike next week, supporting an underlying flattening dynamic. Amid political uncertainty Italian bonds need not look to the ECB for help as activation looks far from being imminent.

ECB front loading can prolong curve flattening dynamics

The ECB surprised markets by hiking 50bp and going against June’s guidance of a 25bp hike. This has signalled to the market a greater willingness to front load tightening, though we will also see a greater dependence on data now that the ECB has effectively abandoned forward guidance.

The market sees the ECB squeezing more of its policy tightening into the upcoming meetings. The September forward has inched up slightly towards 0.5%, which implies another 50bp is more than fully priced. But having brought forward the 50bp to July instead of leaving an even larger move to September may be read by some as admitting that the window to raise rates is closing fast. The ECB moving towards data dependency is thus a dovish twist.

For now, inflation readings staying stubbornly high and an ECB focused on fighting inflation can keep markets positioned for the prospect of further fast-paced tightening. This had helped overall curve flattening in longer tenors where markets’ unease over the broader economic outlook is reflected. Yesterday 10Y Bunds yields actually ended lower, more than reversing the initial knee-jerk reaction higher. And judging from longer-dated inflation swaps maintaining their downward trend, inflation concerns are less of an issue here.

ECB reveals transmission protection instrument with unlimited fire power, but…

The ECB announced it widely anticipated Transmission Protection Mechanism which complements its existing market intervention tools, the flexible Pandemic Emergency Purchase Programme (PEPP) reinvestments and the Outright Monetary Transactions (OMT).

The new tool has been equipped with ex ante unlimited fire power, but for Italy the hurdle to activation looks high under current circumstances – one can hardly talk of “unwarranted, disorderly market dynamics” when domestic political turmoil is driving Italian bond spreads wider, and also as spread levels are still not entirely out of whack with other credit risk and volatility indicators. That said, those indicators and Italian spreads have started to head in opposite directions of late, and we do see more widening for Italian spreads ahead towards the 250bp area.

Yesterday, Italy’s President Mattarella officially called elections for the 25th of September. While much can still change, current polling sees a coalition of centre-right and far-right parties in the lead, and that gives rise to prospects of at least former openly EU-sceptic personalities being in any new government. In the event of Italian bond markets coming under severe stress, the eligibility criteria outlined by the ECB against that backdrop might also give rise to fears that any such crisis will boil down to politics in the end. Not least as the TPI has an exit clause which states intervention could end if the ECB comes to the conclusion that “persistent tensions are due to country fundamentals” – TPI is for everyone but Italy.

As if to confirm that Italian bond holders should not look to the ECB to manage spreads down, Reuters cited ECB sources saying  that internal metrics did not show any unwarranted fragmentation in any eurozone country. For now the Governing Council deemed the exiting tool of flexible PEPP reinvestments is enough to contain fragmentation.

Overall it has to be said the ECB maintains a high degree of discretion over how to apply criteria, which have not been spelled out in detail. With regards to implementation the ECB has indicated that TPI purchases will be sterilised, but has left open whether this will be done by selling other assets or issuing term deposits.

Read Forex Forecast: GBPUSD, EURUSD, USDJPY

Post Views: 381

Related posts:

MarketNewsRates Spark: ECB to set the tone for summer FXStreetAUDUSD tests 0.6900, remaining in descending channel – EURCHF flags bullish trend reversal ahead of ECB FXStreetForex Technical Analysis: GBPUSD, EURUSD and ECB, USDJYP MarketNewsEuro gives up ECB-inspired gains as recession looms FXStreetBitcoin’s inverse correlation with inflation-adjusted bond yield hits record high FXStreetBTC miners ‘finally capitulating’ – Five things to know in Bitcoin this week FXStreetGBPUSD outlook FXStreetForex Technical Outlook: Yen, Pound
Tags: ECBForex/CFDs/Cryptos NewsRates sparktransmission protection instrument
30 USD No Deposit Bonus 30 USD No Deposit Bonus 30 USD No Deposit Bonus
Previous Post

What does the race to raise rates mean for precious metal prices? [Video]

Next Post

Forex Forecast: GBPUSD, EURUSD, USDJPY

Admin

Admin

Related Posts

ForexNews
Forex/CFDs/Cryptos News

Economic Headwinds in Europe: Exploring the Lower Trading Figures

July 25, 2023
EUR-USD
Forex/CFDs/Cryptos News

EUR/USD Forecast: Turbulent Times Ahead for the Euro

July 17, 2023
FXcurrencies
Forex/CFDs/Cryptos News

Mastering Murrey Math Lines for Trading USD/JPY and USD/CAD

April 19, 2023
oil
Forex/CFDs/Cryptos News

Navigating the Turbulent Waters of Commodity Markets: Higher Prices and Weaker Margins

April 19, 2023
oil
Forex/CFDs/Cryptos News

Energy Prices Spark Inflation Surge in the US: Expert Analysis

April 17, 2023
Gold
Forex/CFDs/Cryptos News

Gold Forecast: Will it Reach $2040 Again and What are the Risks Involved?

September 11, 2023
Load More
Next Post
FXStreet

Forex Forecast: GBPUSD, EURUSD, USDJPY

No Result
View All Result
ADVERTISEMENT
  • Trending
  • Comments
  • Latest
PrimeXBT

PrimeXBT | Step2earn Contest (06.06.22)

May 31, 2022
FBS

FBS | $100 Quick Start Bonus

February 21, 2023
PrimeXBT

PrimeXBT | TradinatoR Contest (27.06.22)

June 6, 2022
xtrade

XTrade | Xmas Season Bonus (26.12.21)

May 24, 2022
CMC Markets

What Is Bitcoin?

52
forexknowledge

What is Forex?

32
Tiomarkets

MT4 vs MT5: What trading platform to choose?

31
CMC Markets

What Is Ethereum?

29
TemplerFX | Grab Your $30 No Deposit Bonus Today

TemplerFX | Grab Your $30 No Deposit Bonus Today

October 2, 2023
Claim Your $30 Free Account with Windsor Brokers

Claim Your $30 Free Account with Windsor Brokers

October 1, 2023
JustMarkets-Grab a Risk-Free $30 Welcome Bonus in Forex Trading

JustMarkets – Grab a Risk-Free $30 Welcome Bonus in Forex Trading

September 25, 2023
Boost Your Profits with OctaFX 50% Bonus Offer

Boost Your Profits with OctaFX 50% Bonus Offer

September 25, 2023

Advertisement

exness

fbs

XM



octafx

icmarkets

XM

Recent Posts

  • TemplerFX | Grab Your $30 No Deposit Bonus Today
  • Claim Your $30 Free Account with Windsor Brokers
  • JustMarkets – Grab a Risk-Free $30 Welcome Bonus in Forex Trading
  • Boost Your Profits with OctaFX 50% Bonus Offer
  • XM Group – How to Claim $30 Forex Welcome Bonus

Connect to ReviewBrokers

facebook twitter telegram
liveinternet liveinternet
Review Brokers

ReviewBrokers Information

Address: Ho Chi Minh City, Vietnam, 70000

Contact us:
– Skype: fxvnpro
– Email:

admin@reviewbrokers.com

reviewbrokers.net@gmail.com

Payment methods:
– Webmoney
– Perfect Money
– Paypal
– Skrill
– Neteller
– Bank Wire
– Bitcoin

Categories

  • Affiliate Program (63)
  • Best Promotions (42)
  • Broker Listing (7)
  • Education (95)
  • Expert Advisors (2)
  • Forex Demo Contest (38)
  • Forex Deposit Bonus (239)
  • Forex Live Contest (53)
  • Forex No Deposit Bonus (30)
  • Forex Rebate (Cashback) (64)
  • Forex Trading Indicators (26)
  • Forex Trading Strategies (15)
  • Forex/CFDs/Cryptos News (963)
  • Other Promotions (51)
  • Promotional Content (14)

Disclaimer

Any promotions, reviews, and other information in the website are just for the information purpose only.

There is no invitation or encouragement to invest in the Financial Market such as CFDs, Forex, Binary Options, Indices, Cryptocurrencies and so on. We disclaim liability for any loss resulting from the use of information contained on this website.

The published comments are private opinions or feedback of the users. ReviewBrokers is not responsible for any information on the website.

Recent Posts

  • TemplerFX | Grab Your $30 No Deposit Bonus Today
  • Claim Your $30 Free Account with Windsor Brokers
  • JustMarkets – Grab a Risk-Free $30 Welcome Bonus in Forex Trading
  • Boost Your Profits with OctaFX 50% Bonus Offer
  • XM Group – How to Claim $30 Forex Welcome Bonus
  • RoboForex Free Welcome Bonus: How to Claim $30 as a Forex Welcome Bonus
  • Winning Gold Trading Strategies
  • Top Forex Brokers with No Deposit Bonuses
  • FBS Global Roadshow: Nurturing Global Trading Communities Worldwide
  • What is a No Deposit Forex Bonus and How to Get It
  • Maximize Profits with Free Forex Trading Bots
  • How to Start Making Money with Forex Trading for Beginners

Risk warning

Please be aware of your investment into trading markets which is high risk and not suitable for everyone.

© 2013 - 2023 Review Brokers - Forex Brokers Review - Rebates Service - Expert Advisors Signals - Forex Promotions & News.

No Result
View All Result
  • Home
    • Binary Options Brokers
    • Forex Advertising
    • Best Brokers 2022
    • Economic Calendar
    • Contact Us
  • Expert Advisors
    • Expert Advisors Price
  • Forex Brokers
  • Education
    • Forex/CFDs/Cryptos News
    • Promotional Content
  • Forex Promotions
    • Best Promotions
    • Forex No Deposit Bonus
    • Forex Demo Contest
    • Forex Rebate (Cashback)
    • Affiliate Program
    • Forex Deposit Bonus
    • Forex Live Contest
    • Other Promotions

© 2013 - 2023 Review Brokers - Forex Brokers Review - Rebates Service - Expert Advisors Signals - Forex Promotions & News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Warning: array_sum() expects parameter 1 to be array, null given in /home/betbonus/reviewbrokers.net/wp-content/plugins/jnews-social-share/class.jnews-social-background-process.php on line 111