If growth fears intensify, then any tough rhetoric from the ECB on inflation will be much less effective in supporting the Euro. There were weak services-sector PMI readings for Spain, France and Italy on Tuesday even though the figure for the Euro-zone as a whole held steady. Read More …
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The greenback is gaining against major currencies while upside risks for inflation remain as this may cause the Feds to hike interest rates. The US dollar is covering on some of its losses as it is expected that the worst of the financial markets has come to an end while… Read More …
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Growing concerns over the future of the 15-nation economy and its whereabouts, rising inflation seems to be adding more pressures on Europeans’ spending, while the rising Euro was still not able to face the never ending rises in energy and food prices? Read More …
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UK Industrial Production missed badly printing at -0.5% versus forecasts of just a small decline of -0.1%. The much worse than expected results from the UK industrial sector sent pound tumbling to an 11 week low and raised the possibility that the BoE may be forced to lower rates another… Read More …
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Eurozone retails sales unexpectedly fell 0.4% in March, against expectations of a 0.2% increase. The fall marked the second consecutive month of declines as February saw a revised 0.2% decline, and brought the year over year down to -1.6%- the lowest since 1995. Record food and oil prices have squeezed… Read More …
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U.K. manufacturing production unexpectedly fell 0.5% in March from 0.4% the month prior, as the housing slump weighs on the economy. A look at the components reveals 10 out of 13 declined including basic metals (-0.7%), rubber and plastics (-1.8%), transportation (-0.3%) and paper and printing products (-0.9%). Consumers are… Read More …
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The dollar gained against the euro as the Federal Reserve Bank of Kansas City President Thomas Hoenig said ‘serious’ inflation pressures may spur the central bank to raise interest rates. Some traders are looking at Hoenig’s comments with interest and have decided to push the dollar up. ‘This is a… Read More …
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The European central bank will hold a monetary-policy meeting on Thursday 8 May with the announcement of the interest-rate decision at 1:45 p.m. and a press conference at 2:30 p.m. There is consensus in the market that neither this time will the ECB follow the example of its American counterpart… Read More …
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The decision in May about interest rates will rest on new estimates by the BoE of growth and inflation, which will be announced in connection with the inflation report. The inflation report will not be released until 14 May. When rates remain unchanged, the BoE usually does not attach any… Read More …
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Today sees the start of the 2-day meetings by the ECB and BOE but neither is expected to result in any change of policy. The ECB certainly has no thoughts of cutting rates and at this stage higher rates are more likely to be counter-productive with the source of inflation… Read More …
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