Home > Uncategorized > Weekly Overview: 2010/03/03: Trichet Too disciplined to be Drawn on Greece at Tomorrow’s ECB Press Conference

Weekly Overview: 2010/03/03: Trichet Too disciplined to be Drawn on Greece at Tomorrow’s ECB Press Conference

▪ While the central bank focus has shifted to tomorrow’s typical Bank of England and European Central Bank decisions, we don’t expect any surprises. With the bond markets a bit more buoyant of late, it would be highly surprising for the BoE to increase its Asset Purchase Target after demurring last month. While there will be no small number of attempts to draw ECB President Trichet into meaningful comment on the Greek situation at tomorrow’s post-rate decision press conference, he has demonstrated his ability to deflect all comers on this issue at previous meetings; and we can only imagine it will be much the same tomorrow.

▪ …the overall fate of market trends does not really seem to be about those influences or the economic data. It has much more to do with the broader background influences related to sovereign debt, and the general health of the US economy and especially US consumer sentiment and activity. As such, our comments in the extensive table below we will be a bit about where we have been.  However, where we are going is less than clear based upon the normally prominent economic data seen in the first week of the month, as it has required so many adjustments and shadings to account for US and global weather distortions.  That is not even considering the broader implications of the data released so far this week that we will be revisiting in tomorrow’s TrendView GENERAL UPDATE. In addition to more extensive technical trend discussion, that will include the review of those key fundamental factors.

▪ It is therefore of significant import with so many other factors swirling around the over economic data that even the typically crucial US Employment (FEB) report on Friday must be taken with the proverbial grain of salt. In fact, after today’s announcement of additional Greek concessions on spending and taxes, Friday’s US Employment report’s influence will be superseded by the extremely significant meeting between German Chancellor Merkel and Greek PM Papandreou.

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