ECB: Resurrecting a market theme of divergence - ANZ

Research Team at ANZ, suggests that at the same time of increased Fed chatter, both ECB Executive Board member Coeure and BoJ Governor Kuroda reinforced their respective central banks’ easing biases, perhaps resurrecting a market theme of divergence that had gone a little quiet with the Fed’s apparent reluctance to hike.

Key Quotes

“To be fair, both officials reinforced the need for fiscal policy to step up and help stimulate growth (this seemed to be a particular bug-bear of Coeure’s), but divergent policy action – if it is not derailed again by any global shocks or data surprises (which are big ifs, admittedly) – should contribute to renewed USD support, perhaps at least capping the topside for NZD and AUD.”