In a previous post we defined and explained the hawkometer. This is measure of the monetary policy stance by a Central Bank. Sigma Derivatives an independent news provider, offers on a regular basis a measure of the hawkometer. In their latest report they show that in the European Central Bank (ECB) the tone of hawkishness has increased going from 5.2 in January to 6.5 in February (see picture below). This reveals a general support for the forthcoming 25 point increase this week and for further tightening to go after March. This message is in agreement with the markets. In Europe markets are pricing in almost 100% of a 25bp for this week