Have the ECB doves gone ahead of themselves? | MarketTalk: What’s up today? | Swissquote

Show notes

European markets were silent on Monday, as the EURUSD remained offered below its 200-DMA today, although the softening Federal Reserve (Fed) expectations make more sense than softening ECB expectations, provided that the ECB is NOT in a comfortable place to call a pause at this month’s meeting amid the uptick in latest inflation figures.
In equities, the European stocks have less potential than their US peers, but the FTSE 100 could surf on the rising energy prices in H2.
On the flip side of the world, the Reserve Bank of Australia (RBA) kept its cash rate unchanged at 4.1% at today’s monetary policy meeting. The EURAUD rebounded from a month-dip as investors saw opportunity to trade the soft RBA stance versus a possibly unfunded softness in ECB expectations.
Elsewhere in the Pacific, Japan is testing the market demand for its 10 and 30-year bonds this week, as the finance ministry sells 2.7 trillion-yen worth of 10-year bonds today and 900-billion-yen worth of 30-year bonds on Thursday. Of course, the Bank of Japan (BoJ) is out and buying a massive amount of bonds to make sure that the YCC not too relaxed, and traders are looking for signs of still sluggish demand from local investors that could force the BoJ to act earlier than … never.
Listen to find out more!