The European Central Bank (ECB) is scheduled to announce its monetary policy decision this Thursday at 11:45 GMT, which will be followed by the post-meeting press conference at 12:30 GMT. Today’s ECB announcement may have more significance and is closely followed by the markets as it is one week ahead …
Read More »Growth slowdown and inflation would dominate ECB’s meeting
Investors and observers have expected the European Central Bank’s October meeting to be unexciting, but the current mixture of growth slowdown and higher inflation could cause it to be more action-packed than anticipated.Although big decisions on the future of the European Central Bank’s emergency stimulus package are unlikely to be …
Read More »BOJ would hold fire as inflation surges, Yen weakened
The Bank of Japan is expected to keep fiscal policy settings steady on Thursday and to contain inflation to stay below its 2% target for at least two more years.The BoJ is widely expected to leave its stimulus unchanged amid further delay in the economic recovery from the pandemic, only …
Read More »USD/CAD reacts to the BoC’s decision
USD/CAD fell for the first time in the week, down by 0.25%, trading at 1.2358 during the New York TRADING session. As the BoC decided to keep interest rates unchanged, investors’ expectation towards the QE was a reduction in its weekly purchases from CAD 2 billion to CAD 1 billion. …
Read More »Inflation will last longer over supply chain difficulties
The largest U.S. manufacturers including do encounter logistics headache and higher costs as a result of global supply bottlenecks that could continue into 2022, but most companies agree that the hit to profits can be compensated by charging higher prices for their goods.Companies globally pushed the alarm button reiterating that …
Read More »Do BoC’s signals pressure U. S. Fed?
Short term U.S. Treasury yields leapt higher Wednesday after the Bank of Canada shut down its QE program and signaled for an early 2022 interest rate hike only some days before November’s awaited Fed policy meeting.Treasury yields jumped higher Wednesday, pushing major stock indices into the red zone, after the …
Read More »German 10 year yield lowest in over a week
German 10-year bond yield retreated to the lowest in more than a week, a development that caused yield curve to be flattened on Wednesday.After a brief break, the government yield curves across developed markets are back to flattening over the last couple of successive sessions.This low reflects concern that central …
Read More »Traders pronounce doubts on Bank of Canada’s rate hike schedule
Investors await fiscal policy announcement, Wednesday, for clues that Canada’s central bank is turning more hawkish. Led by Governor Tiff Macklem, the Bank of Canada is expected on Wednesday to raise its inflation forecast and to largely end stimulus related bond buying program, starting a countdown of sorts to the …
Read More »Forex market’s tensions accelerated by stances of central banks
The U. S. dollar ended the trading session with mixed performance. It is particularly stronger against European rivals. EUR/USD pair is down to the lower end of its weekly range, trading in the 1.1590 price zone.GBP/USD settled around 1.3760. The pair received additional pressure from comments by European Commissioner for …
Read More »Bank of Canada faces challenges on surging inflation
The Bank of Canada will continue pulling back its stimulus that has been in place to support the economy at a policy decision this week, paving the way for the start of interest rate increases next year amid inflation concerns.Governor Tiff Macklem is expected to reduce weekly government bond purchases …
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