The European Central Bank said on Thursday that it will reduce the size of its monthly asset purchases to EUR 30 billion from the start of next year and will continue them at least till September, in line with economists' expectations for a “lower for longer” tapering.
“Purchases under the asset purchase programme (APP) will continue at the current monthly pace of EUR 60 billion until the end of December 2017,” the bank said.
“From January 2018 the net asset purchases are intended to continue at a monthly pace of EUR 30 billion until the end of September 2018, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.”
The Governing Council, led by ECB President Mario Draghi, kept all its three interest rates unchanged for a twelfth consecutive policy session.
The main refi rate was held at a record low zero percent and the deposit rate at -0.40 percent. The marginal lending faci..Read More →

The European Central Bank said on Thursday that it will reduce the size of its monthly asset purchases to EUR 30 billion from the start of next year and will continue them at least till September, in line with economists' expectations for a “lower for longer” tapering.
“Purchases under the asset purchase programme (APP) will continue at the current monthly pace of EUR 60 billion until the end of December 2017,” the bank said.
“From January 2018 the net asset purchases are intended to continue at a monthly pace of EUR 30 billion until the end of September 2018, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim.”
The Governing Council, led by ECB President Mario Draghi, kept all its three interest rates unchanged for a thirteenth consecutive policy session.
The main refi rate was held at a record low zero percent and the deposit rate at -0.40 percent. The marginal lending f..Read More →

Last week 223K vs 222K originally reportedThe figures:Initial jobless claims 233K versus 235K estimatethe prior Week was revised up to 223K vs 222Kcontinuing claims 1893K versus 189 okay estimate. Prior week 1896K versus 1888KFour week claims average drops to 239.5 K versus 248.5 KClaims taking procedures continue to be severely disrupted in Puerto Rico and the Virgin Islands as a result of power outages and infrastructure damage caused by Hurricanes Irma and Maria.
The largest increases in initial claims for the week ending October 14 were in Puerto Rico (+1,708), Kentucky (+476), Tennessee (+118), Vermont (+71), and Wyoming (+29), while the largest decreases were in Florida (-2,547), Michigan (- 2,271), Georgia (-1,919), Texas (-1,791), and Illinois (-1,751).Read More →

Retail inventories of September -1.0% vs 0.7% last monthThe Wholesale inventory data for September is showing:Wholesale inventories for September of 0.3% versus 0.4%the prior month of wholesale inventories was revised to 0.8% from 0.9% previously reportedretail inventories for September fell -1.0% the prior month of retail inventories was revised a touch lower at 0.6% versus 0.7%Read More →

Highlights from the statement
From Jan, net asset purchases intended to continue at 30 billion pace until September or beyondIf outlook becomes less favourable, we stand ready to increase purchasesDomestic price pressures remain mutedAmple degree of monetary policy stimulus is still necessaryEconomic expansion continues to be solid and broad basedLatest survey data point to 'unabated' expansion in H2Construction investment has strengthenedNotes broad-based global expansionRisks remain broadly balancedNotes FX (ie strong euro) as a downside riskWage growth has increased somewhatWatch live here.
The line about monitoring FX volatility was removed from the introductory statement, which is a step back on the anti-euro jawboning.Read More →

Politico citing sources 26 OctWarsh out of race tooanother senior source very close to the process said not to assume that it's just a Powell vs Taylor fight because “Trump changes his mind about it every day.”News just across the wires. Not entirely unexpected tbh with Trump reported to be veering toward Powell or Taylor.
USD rallying to session highs. DXY up 0.45 at 94.09.USDJPY posting 113.88 but back to 113.79 with decent offers/res lurking around 114.00 EURUSD down to 1.1740 but now 1.1755 again. GBPUSD steady around 1.3200
Update:
Full story from Politico here and features an exchange between Trump and Fox's Lou Dobbs:
TRUMP: Tell me who your preference is. … DOBBS: I think I — may I constrain myself? … TRUMP: Yes. … DOBBS: Because an ad hoc advisor to the president – TRUMP: No, but I'd love to hear it. You could even cut it out if you want. You don't have to — I would love to hear you. I only want that from people I respect. … DOBBS: I personally b..Read More →