That is not what happened last week. Of course, the ECB did provide additional stimulus, in the form of another deposit cut and an extension of the QE program. It is also possible that thin liquidity exaggerated market moves, such that the spike in EUR/$ overstates the degree of disappointment to the market. But in the end, what mattered last week was whether the ECB sent a message consistent with President Draghi’s speech in Frankfurt on November 20, one that signalled a sense of urgency over the need to confront low inflation. It did not.
Our best read is that the Governing Council is conflicted over the use of unconventional policies and therefore resisted more aggressive action. Given that – at the zero lower bound – so much rides on a central bank’s willingness to send strong signals in order to influence expectations, last week’s performance likely compounded the damage from the summer, rather than fixing it. In short, our conviction in regime change is down, and we worry that the ECB is starting to lag relative to the BoJ under Governor Kuroda.
zerohedge.com/news/2015-12-07/eur-slides-below-108-after-goldman-raises-eur-forecast
FRANKFURT--German industrial output rose in October, although by less than expected as gains in manufacturing and construction were capped by a slump in energy production.
zerohedge.com/news/2015-12-07/eur-slides-below-108-after-goldman-raises-eur-forecast
FRANKFURT--German industrial output rose in October, although by less than expected as gains in manufacturing and construction were capped by a slump in energy production.
Industrial output, adjusted for seasonal swings and calendar effects, expanded 0.2% in October from the previous month, the economics ministry said Monday. Economists polled by The Wall Street Journal had forecast a 0.5% increase.
"The trend in industrial production was slightly negative of late," the ministry said, but added that rising output at the start of the fourth quarter was "a first step to overcome the weakness of the previous months."
Manufacturing output and construction each increased 0.7% from September, but energy production slumped 5.9%. "Ample wind and sun during the summer had previously led to a noticeable expansion in renewable-energy production," the ministry said.
The industrial output data are the latest in a series of rising economic indicators, that point to a pick-up in German economic activity following a slack third quarter.
The ministry said Friday that manufacturing orders rose 1.8% in October from the previous month, propelled by a 2.4% rise in eurozone demand. Germany's Ifo business sentiment measure hit its highest level in 17 months in November.
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