That’s not surprising as policy-making meetings at the ECB (Sept 7) and FOMC (Sept 20) are coming up and neither was in a position to commit their colleagues in advance.
No comment on monetary policy or the exchange rate was enough to give EURUSD a boost to 1.1940 (see chart). But the bond markets didn’t react much and the probability of a Dec rate hike by the Fed held steady at about 40%.
Here’s an interesting chart (see below). The equity in 4 central banks is listed on stock exchanges (Switzerland, Japan, Belgium and Greece). Shares in the SNB have rocketed as the EURCHF rally makes all those FX reserves accumulated in recent years more valuable in CHF terms. Perhaps a special dividend coming up ?