Monday, September 3, 2012

'This Week Looks Like A Disappointment Already'

In an FX strategy note, Citi's Valentin Marinov writes that: 'This week looks like a disappointment already.'
As you know, this is a huge week that's going to be filled with economic data, politics, and crucially central bank action at the ECB on Thursday. That's far-and-away the main event this week, as everyone is waiting for details on Draghi's plans to stem the Eurozone crisis. There's a belief that he might announce some kind of cap on spreads between peripheral short-term borrowing costs and core ones.
Anyway, Marinov is already underwhelmed. And this note came out last night.
He writes:
This week looks like a disappointment already. The fact the ECB executive board cancelled their trip to Jackson Hole could mean there are still some difficulties to reach a compromise. I think the negotiations will continue but we already had Asmussen and Coeure last week saying that the ECB will reveal only part of the plan.

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