He might as well have just said 'we are going to raise rates by 25 basis points,
Any surprises in the January CPI data from Bavaria and Brandenburg will clearly influence short-term rate expectations, with anything higher than expected likely to boost the euro.
On the upside, the $1.1760-70 area represents the initial target and additional resistance is seen in the $1.1800 area.
The result seemed to reflect a flight to quality in the light of what is happening in the stock market rather than a value judgement.
The prospect now for any reform of Italy's public debt must be close to zero. I wouldn't want to hold Italian bonds until they get to a spread that acknowledges those risks, and they certainly don't at the moment.
This was the deal that had been expected,
We could get an IFO number above expectations, because data across the region is looking stronger. The market will be pretty pessimistic in that case, especially given the hawkish rhetoric we've had from the ECB.
We'll get more buyers with yields around these levels. People won't want to call the end to the Fed rate cycle too quickly though, so I doubt we'll get a big rally.
