Post Tagged with: "Inflation"
A necessary but insufficient ‘compact’
Looking beyond the headlines with regards to the UK’s (and others’) participation or otherwise in the proposed changes to the EU Lisbon Treaty, the “fiscal compact” that emerged on Friday was, at the very least, a step in the right direction. The question is whether it will be seen as enough by the rating agencies
Surprising Jump in European Inflation Lowers Chances of 0.50% Rate Cut
According to the initial release of CPI in the euro-zone, prices rose at an annual pace of 3% in September, much higher than 2.5% that was expected and the highest level in many years. In his last rate decision, Jean-Claude Trichet will probably refrain from cutting the interest rate by 0.5% and perhaps he won’t
Hint of a Rate Cut? ECB Preview
No change is expected in the upcoming rate decision in the euro-zone. Trichet is likely to soften his stance on inflation. But how soft will he be? ECB Preview. In the recent rate decision, Jean-Claude Trichet remained upbeat on inflation risks. He used the code words “very closely monitoring”, which mean that a rate hike
Eurozone engine stalls
With both Germany and the rest of Europe registering almost zero growth last quarter, traders’ and investors’ growth concerns were reawakened yesterday, which for a time weighed on stocks, oil and the euro, and benefitted safe-havens such as treasuries, gold and the Swiss franc. At one stage, the DAX was down almost 3%, the gold
Monitoring Closely or Very Closely? ECB Preview
Jean-Claude Trichet will meet the press once again. He is likely to appear after the announcement of a rate hike, and the markets will focus on his words at the press conference. What will Trichet hint about the next moves? How will the euro react? ECB Preview. Hiking the rates to 1.50% In the previous
US debt-limit talks descend into acrimony
Now that Greece has been temporarily ‘saved’, the focus might start to shift to the unresolved and equally serious issue of the US debt limit. Unfortunately, the omens on this front still look gloomy, with President Obama yesterday chastising the Republicans for their lack of concern for children and the elderly in their negotiations over
No respite soon for high inflation Britain
With consumer price inflation 3% or above for all but nine months of the past three years, after a while it can be no surprise if inflation expectations rise and remain at a higher level. According to the latest survey from Citigroup, inflation expectations for the coming year rose to 3.4% in the current month,
GBP/USD Approaches Resistance on Rising Inflation
Inflation in Britain is up again after taking a breather last month. The annual pace of CPI rose from 4% to 4.5%. A rise to 4.2% was expected.This fresh rise boosts GBP/USD which approaches the resistance region and continues higher. Update. 4.5% is the highest level seen for a very long time. This shows that
Dollar takes a breather
After a (frankly) sparkling first couple of weeks of this month, Monday witnessed some profit-taking in the greenback. Other than dollar longs taking profit, a slight improvement in risk appetite and some market participants taking a more benign view of Greek developments, it was difficult to pinpoint any other particular rationale for the price action.
China’s gradual economic rebalancing
Against the backdrop of crucial bilateral talks between the world’s two superpowers, it is clear that China increasingly understands the urgent need to undertake economic rebalancing. For instance, PBOC officials have repeatedly stated over recent months that a stronger exchange rate can play a part in inhibiting the build-up of inflationary pressures. This is a