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Tuesday, September 22

22nd Sep - EUR weakens

Previously on MoreLiver’s:
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 EURUSD, stocks lower. Both have one or maybe two red bars left before support levels.

Euro area: ECB shouldn’t panic about growthNordea
ECB policy makers are out saying that the ECB could expand the asset purchases. It is our long-held view that QE will go on beyond September 2016 because inflation is unlikely to be close enough to the ECB’s target by then. By contrast, we are not convinced that the ECB will accelerate QE. Inflation will pick up soon due to base effects and the growth outlook is not that bad, despite the China risk.

Global: Are markets experiencing two Minsky Moments?Nordea
Markets have been experiencing unwinds of USD carry trades for the past year. This represents a "Minsky moment" in the EM space. What’s more intriguing is the potential for another - much more problematic - "Minskian chicken" coming home to roost in China.

FX: ECB’s Fed-acheNordea
After the dovish pass by the FOMC in September, pressure is rising on other central banks to do more. Markets might start to discount ECB QE2 in November. EA’s CA surplus is EUR-supportive, but is mostly recycled. What if risk appetite improves?

Morning MoneyBeat AsiaWSJ
U.S. Stocks Rise, Regain Footing

Morning MoneyBeat EuropeWSJ
Fed to Markets: Rate Rise This Year Still on the Cards

Morning MoneyBeat USWSJ
Fed Officials Repeat 2015 Is In Play

Danske DailyDanske Bank

Euro rates updateNordea

Chinese PMIs to reflect continued weakness * Euro-area yields higher, with long end underperforming * SEK under pressure after otherwise neutral 2016 budget bill

Morning MarketsTF
Last week's dovish Federal Reserve decision has left both the US and the UK hunting for hopeful macro signals as the conditions for monetary normalisation struggle to remain in view.

Daily ShotTF
The shares of Volkswagen, which only in July was said to have taken over Toyota as the world's largest car maker, plunged by almost 20% following the companies manipulation of emission data in the US. When it comes to the Fed a rate hike this year is still possible.

Daily Press SummaryOpen Europe
Visegrad summit rejects migrant quotas as Prague threatens to take EU to court *
Danish PM backs Cameron’s push for EU reform * Tsipras sworn in as Greek Prime Minister for the second time this year * Conservative Party to remain neutral in EU referendum campaign *
Labour donor Mills: Without EU reform Labour risks precipitating ‘leave’ vote * France seeks greater clarity over EU reform agenda * US Chamber of Commerce not impressed with Commission’s proposal for new TTIP dispute resolution mechanism * French Economy Minister under fire for challenging civil service perks * Commission considers easing capital rules to allow insurance firms to invest in infrastructure * Italy complains higher bank capital charges at odds with loose monetary policy * Commission set to launch its own investigation into VW car emissions * Merkel and Hollande to give joint address to the European Parliament

Brussels PlaybookPolitico
Migration meetings — Parliament renovation spat — TTIP trauma

Futures Plunge On Renewed Growth, Central Bank Fears; Volkswagen Shares Crash As Default Risk Surges


FX UpdateTF
The euro is deflating very quickly now, with the single currency weakening across the board. This is a sign that the euro carry trade may be back on the front burner, though we’ll need a stronger surge in risk appetite for this theme to have legs.

From the FloorTF
The ECB's nagging reminders that it might deploy another volley of QE helped send the euro spinning lower across the board last night, especially against the USD. But the narrative here is less about dollar strength and more about euro weakness.

Öljyn hinta pitää Norjan ahdingossa * Eilen äänessä olivat Fedin Bullard sekä Lockhart * Korjasimme ennustetta Ruotsin keskuspankin ohjauskorosta | Euro heikkeni laajalla rintamalla