As regards the currency market, pricing of more dovish
policies may result in a weaker RUB, especially as its performance since the start of the year failed to impress despite the high hopes.
German Chancellor Angela Merkel inspired bearish pressure on the Euro when she expressed that its current high valuation would make it more difficult for some European nations to conduct structural reforms, but with the ECB's Coeure also making dovish
comments a few weeks back when we were also approaching 1.
The question at the top of every market participant's mind is whether the world's largest central bank will follow its global counterparts into a more dovish
policy lean," said John Kicklighter, Chief Currency Strategist at DailyFX.
Global Banking News-October 27, 2014--BofA Merrill Lynch says India's central bank could turn dovish
Speculation of a quantitative easing (QE) programme has grown since ECB President Mario Draghi struck a dovish
tone at the Jackson Hole meeting last week.
KUWAIT, April 20 (KUNA) -- Mixed performance in the FX market last week, as major currencies gained against the US Dollar, after Fed Chair Janet Yellen seemed dovish
during her speech last Wednesday, an economic report showed here on Sunday.
It's predictable that we're going to see a dovish
stance (from the Fed,) but if it's more dovish
than expected, the dollar could be sold further," Saito said.
Assuming that the upward revision of inflation is not too sharp, the report could signal that the BoE is even more dovish
about raising interest rates from the record low of 0.
Both nominal and index-linked government bonds rallied strongly in response to such dovish
shift in policy may occur next month as suggested by many observers, however, as for now, the central bank will maintain its current stimulus programs until recovery is certain given the uncertainty of global events as stated by Prime Minister Gordon Brown yesterday.
Fukuda is known to favor a dovish
diplomatic approach toward China and other Asian countries.
Some economists said the latter comments suggested that he may take a dovish
slant on interest rates.