Forex News | Currency News by Forexlive

And I wish I could dunk a basketball. Neither of those things is likely to happen anytime soon.

PPP is purchasing power parity, a horrible forecasting tool for currencies.

The SNB needs a new chief as soon as possible, the EcoMin says, noting that the bank is well-governed by interim chief Jordan, according to Reuters headlines.

EUR/CHF us unmoved at 1.2067.

The Swiss government commissioned a report in the wake of the Hildebrand affair on SNB governance.

The report finds the structure of the SNB and its relationship to the government to be just fine and that the SNB is independent in its monetary policy.

Nothing to see here, move along…

• The BOE’s Bean says UK growth will be sluggish in H1 despite recent encouraging signs
• Growth should gradually strengthen but will be moderate
• Inflation should continue to fall and help to boost consumption
• The Greek deal is welcome but Eurozone crisis remains biggest risk to UK
• Without QE, inflation would have stayed below 2% in medium term.

The discount rate meeting minutes show that officials from the Boston Fed wanted to cut the Fed’s discount rate to 0.50% from 0.75%. The aim was to bring it into line with the rate for foreign central banks in the dollar swaps rate. They cited weak growth, a soft housing market and high unemployment as reasons.

Meanwhile, the Kansas City Fed wanted to hike the discount rate.

The Feb 29 offering will tell the ECB and the market how tight the funding market is. Reuters has some insight:

Powerful members of the central bank’s 23-man governing council are privately  hoping demand at the February 29 auction will fall well short of the 1 trillion euros some expect, backing their view that it should be the last.

Others (perhaps PIIGS fin mins) are hoping the ECB will continue to offer cheap funds.

The LTRO is viewed as what saved the Eurozone in December and comments from Italy suggest they expected another leg down in periphery bond yields afterwards. There’s always a chance that doesn’t happen, even with a high take-up.

The theme for euro trading in the next 8 days will be the LTRO. Expect a massive move on the euro based on the results, even if the mechanics of the program are poorly understood.

In recent trade.  We’re at 1.3248 from recent low in 1.3230′s.

The Bank of Italy Director also said that a Greek default wouldn’t lead to the end of the euro.

• The ECB has crucially helped credit to the real economy with its measures since Dec (LTRO)
• It’s essential that EU treaty is not violated or shifted

In the week ending Feb 17, the ECB stayed out of the market for the first time since August. They bought just 59m euros in securities the week before.

That’s good news for the periphery and the euro.

How I miss good old Danny……

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