ZuluTrade Blog

ECB Weidmann said Monetary policy is not a panacea and central bank firepower is not unlimited

Market View | Tuesday, April 24, 2012 5:01 AM GMT

Good Morning ,

- The Aussie is weaker across the board, following a lower than expected
CPI which should pave the way for lower rates in Australia. AUDUSD dropped to
1.0247 (high 1.0325) and EURAUD jumped almost 100 points on the release of the
number (1.2740 to 1.2832).

- Stocks: Nikkei -0.71 %, Hang Seng -0.07 %, Shanghai Composite -1.34 %,
Dow Jones -0.78 %, S+P500 -0.84 %

- The German government expects the country's economy to expand by 0.6% to 0.9%
this year and by 1.6% to 1.9% in 2013, daily Die Welt reports, without naming
sources, in a summary of an article to be published Tuesday. The government
will revise its forecasts from 0.7% previously for this year and 1.6% for
2013, according to the newspaper.

- ECB Weidmann said calls for the central bank to do more to fight the
sovereign debt crisis overestimate its capacity. "Monetary policy is not a
panacea and central bank firepower is not unlimited, especially not in a
monetary union," Weidmann said. "We can only win back confidence if we bring
down excessive deficits and boost competitiveness. And it is precisely
because these things are unpopular that makes it so tempting for politicians
to rely instead on monetary accommodation."

- ECB Nowotny said an exit from the central bank's expansionary monetary policy
measures "is not something that is of immediate concern." The ECB has the
volume of money under control and "can react" if needed, Nowotny said. "I
don't see the need to act right now."

- Swedish Finance Minister Anders Borg said he sees "very dark clouds" over the
Spanish banking system.

- Moody's: Collapse of Dutch government a credit negative, Aaa stable outlook

- Francois Hollande, the winner of the first round of France's elections, said
Europe's austerity drive fueled despair and created conditions for the
record-high score for anti-euro National Front leader Marine Le Pen.

- Japanese Economics Minister Motohisa Furukawa said on Tuesday he hoped the
Bank of Japan would maintain its stance of pursuing powerful monetary easing
and that it would act accordingly.

- The Australian government's plan to return to a budget surplus will give the
central bank maximum flexibility on setting interest rates, the country's
Treasurer Wayne Swan said on Tuesday. Swan was giving a media briefing
following data showing consumer prices rose by far less than expected last
quarter and underlying inflation was the slowest in over a decade, clearing
the way for a cut in interest rates next week.

- The Conference Board's leading index for China rose 0.8 percent in March,
compared with a revised 1 percent gain in February, the New York-based
researcher said in a statement today in Beijing, citing a preliminary reading.

- 1500 S&P Case Shiller Home Price Feb
- 1600 US Consumer Case Shiller HOme Price Index Feb
- 1600 US Consumer Confidence Apr
- 1600 US Richmond Fed Manufact. Index Apr
- 1600 US House Prices Index Feb
- 1600 US New Home Sales Mar
- 0845 France Consumer Confidence Indicator Apr
- 0845 France Business Survey Overall Demand Apr
- 1000 BOS Aritegui
- 1000 BIS Caruna
- 1100 Chancellor Merkel
- 1245 ECB Gonzalez-Paramo
- 1400 Germany Fin Min Schaeuble, Lux CB Mersch, Lux Fin Min Frieden
- 1830 Germany Dep Fin Min Steffen
- 1900 BOP Costa
- 1030 UK Public Finances Mar
- 1030 UK PSNB ex Interventions Mar
- 1030 UK Public Sector Net Borrowing Mar
- 0800 Switzerland Trade Balance Mar
- 0800 Switzerland Consumption Indicator Mar
- 0930 Sweden Unemployment Rate Mar
- 1430 Canada Retail Sales Feb


Have a nice day !

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