Posted Dec 22, 0:07

ECB Doves Grow Louder

Eurozone Consumer Confidence (DEC) [P] Dec 22 15:00
18 hours ago: 

Two ECB Governing Council members hinted at sovereign QE as the chorus grows louder with the ECB meeting exactly one month away. Early-week moves have been small so far after USD led last week and CHF lagged. Weekly positioning data showed that CHF shorts picked a bad time to give up. 

The top news on the weekend was from the ECB. Vice-President Constancio said negative inflation is expected in the coming months and that it needs to be looked at very closely. He left himself some wiggle room, however, saying that a few months of negative prices doesn't necessarily signal danger.

PREMIUM INSIGHTS Update: Dec 17, 18:18
Fundamentals Displaced by Sentimemt, BoJ Next Dec 18, 2014 23:43: 

Year-end is near and that means flows dominate rather than fundamentals. The S&P 500 roared higher while GBP led and CHF lagged. The Bank of Japan decision is up next. 5 trades from the Premium Insights are currently in  progress, 4 of which are in progress. USDJPY and AUDCAD are the trades with the most in the money with more than 200 pips each.  1of the EURNZD longs hit all targets, with the other in progress in the red. 


SNB’s negative rates panic not enough Dec 18, 2014 17:35: 

Today's SNB entry into negative rates will not be enough. Just as the SNB was forced into a series of interventions in summer 2011 before eventually formalizing the 1.20 peg, more will be needed to maintain the peg and combat a fresh onslaught of risks such as deflation-inducing oil collapse, event risk in Russia, uncertainty in Greece and exported deflation from China. Full chart & analysis.