- At the moment, the current impression is that a protracted shutdown is unlikely
- A longer shutdown would be a risk for the United States and the global economy
- Don’t make too much relation between excess liquidity and short-term money market rates
- We exclude no options and are ready to act according to money markets or other needs
- Full allotment in all liquidity operations at least until July 2014
So far Draghi hasn’t covered any new ground, these comments are very similar to last month. There was the risk of something more dovish and the euro is reacting to that but it looks like EUR/USD buyers were waiting in the weeds because nothing he’s said is worth a 70-pip jump in EUR/USD.
- European recovery weak, fragile and uneven
- Eurozone more resilient now than it was
- We are seeing a period of instability in Italy
- Credit flows are weak, very weak – both demand and supply reasons
- Credit is a lagging indicator
- Improvements in bank lending side are marginal
