The ultra-low inflation seen in the euro zone until recently are unlikely to return even after the pandemic is over, the European Central Bank’s chief economist Philip Lane said, citing changes in the global economy among other factors.Lane had dismissed the notion of a new era for inflation until recently …
Read More »Market Drivers – US Session – 16 February
What you need to know on Thursday, February 17:The American dollar edged lower on Wednesday, despite the release of upbeat US data and uncertainty related to Russian and Ukrainian border tensions. The US Federal Reserve released the Minutes of the latest FOMC meeting, which indicated that policymakers are willing to …
Read More »EUR/USD Climbs Following FOMC Minutes
During the North American session, the European currency extended its rally, so far up 0.40% in the week, amid uncertainty in the Russia/Ukraine conflict. At the time of writing, the EUR/USD is trading at 1.1379.The conflict between Russia and Ukraine has kept the market mood continuously swinging since last Friday, …
Read More »Fed rate decisions will be made on meeting-by-meeting basis
Federal Reserve officials last month agreed that, with inflation widening its grip on the economy and employment strong, it was time to tighten monetary policy, but also that decisions would depend on a meeting-by-meeting analysis of data, according to minutes of the Jan. 25-26 policy meeting.Participants agreed that the US …
Read More »FOMC Minutes: Most Policymakers Suggested Faster Interest Rate Hike
The minutes of the 25-26 January FOMC meeting, released on Wednesday, said that most participants suggested that a faster pace of increases in the target rate for the Federal Funds rate than in the post-2015 period would likely be warranted. Additional Quotes Participants continued to stress that maintaining flexibility to …
Read More »Kazimir Defends ECB Policy In Clash With Minister Over Prices
Some European Central Bank officials are coming under increasing heat from Eurozone governments as accelerating inflation stokes tension.Governing Council member Peter Kazimir of Slovakia defended the Frankfurt-based ECB on Wednesday against his country’s economy minister, Richard Sulik, who said asset purchases under the bank’s quantitative easing program were hurting consumers. …
Read More »Schnabel: ECB Must Considered Prices When Deciding On Tapering
European Central Bank executive board member Isabel Schnabel said on Tuesday, in an interview with the FT, that the bank must consider the “unprecedented” rise in house prices when it comes to assessing inflation and deciding on how fast monetary policy settings should be tightened. The FT framed her comments …
Read More »Gold Touches its Highest Level in More Than a Week
Gold prices hit their highest in more than a week on Monday, as inflationary pressures from higher oil prices helped offset the impact of an increase in US Treasury yields after a positive jobs report, while the appetite for the metal also supported a decline in stocks. Gold rose in …
Read More »Week Ahead: Inflation Data Next Focus For Investors After Bond Yield Spike
Fierce swinging in stocks and a sharp upping of government bond yields are putting the spotlight on next week’s US inflation data, as investors look forward to more volatility across asset markets.A turbulent week in markets ended with a surge in Treasury yields to their highest level in more than …
Read More »Latin American Assets Impacted By Strong US Jobs Data
Most Latin American stocks and currencies fell on Friday after data showing strong jobs growth in the United States created room for a more hawkish US Federal Reserve.MSCI’s index of Latin American currencies. MILA00000CUS fell 0.8% and stocks .MILA00000PUS dropped 0.5%. Still, both the indexes were set for weekly gains …
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