ECB Decision Euro relief. The euro appreciated to a 1-week highs vs the U.S. dollar after the ECB is not signaling the existence of interest rate cuts in the future. The ECB also kept its benchmark rate unchanged at 0.75%. The euro was also boosted by Spanish debt auction, which reap strong demand and punched the 10-year bond yield down to 10-month lows. The euro also soared to its strongest level versus the yen 18-month and 1-month highs against the Swiss franc. "Most market participants, including I, previously predicted if the ECB would imply lower interest rates on loans," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. "But in fact it did not happen, leading to a strong buy signal for the Euro."
George Fed: Interest Rates Low Could Trigger Inflation Surge
President of the Federal Reserve Bank of Kansas City, Esther George said that the record stimulus the central bank may be able to trigger the risk of financial instability and a surge in inflation. A good friend of my heart. "A prolonged period of zero percent interest rates can substantially increase the risk of future financial imbalances and would impede the Fed's inflation target of 2 percent, George said today in a speech in Kansas City, Missouri. George said that he was concerned about the high level of asset purchases would "almost certainly increase the risk of an exit strategy FOMC complex" because bonds must eventually be sold. "Like everyone else, I was concerned about the high rate of unemployment, but I recognize that monetary policy contributed to the imbalances and financial instability, could easily exacerbate the unemployment rate as well as the level of repairs, said George to the Central Exchange.
Aussie catapulted China Trade Data
The Australian dollar surged to a 3-week versus the greenback after data showed China's imports rose to a record high. China's exports grew 14.1% in December, while imports rose 6%. That left a trade surplus of $ 31.6 billion. In a separate, data development approvals in Australia able to record a rise in the 3rd in 4 months in November, as lower interest rates encourage growth plan apartment projects. "China data, both imports and exports, has managed to surprise a lot of people," said Mike Jones, currency strategist at Bank of New Zealand in Wellington. "And it has added to investor optimism the economy will rebound in China, so that pushing the Aussie dollar to move higher."
Sterling Recovers After BoE policy meeting
Pound rebounded against the U.S. dollar after the Bank of England kept its monetary policy unchanged. BoE to maintain its key rate at a record low of 0.5% and raised its bond purchases from current levels, £ 375 billion. On the other hand, consumer spending and a stagnant British output still weak growth implies spare capacity in the economy. So keep expectations of further monetary easing in the coming months. Meanwhile, chief market economist at National Australia Bank, Tom VOSA, argues that despite the decline in output will increase expectations of further QE, the decision to expand its asset purchases likely will be launched after Mark Carney took over as the Governor of the BoE on July 1.
George Fed: Interest Rates Low Could Trigger Inflation Surge
President of the Federal Reserve Bank of Kansas City, Esther George said that the record stimulus the central bank may be able to trigger the risk of financial instability and a surge in inflation. A good friend of my heart. "A prolonged period of zero percent interest rates can substantially increase the risk of future financial imbalances and would impede the Fed's inflation target of 2 percent, George said today in a speech in Kansas City, Missouri. George said that he was concerned about the high level of asset purchases would "almost certainly increase the risk of an exit strategy FOMC complex" because bonds must eventually be sold. "Like everyone else, I was concerned about the high rate of unemployment, but I recognize that monetary policy contributed to the imbalances and financial instability, could easily exacerbate the unemployment rate as well as the level of repairs, said George to the Central Exchange.
Aussie catapulted China Trade Data
The Australian dollar surged to a 3-week versus the greenback after data showed China's imports rose to a record high. China's exports grew 14.1% in December, while imports rose 6%. That left a trade surplus of $ 31.6 billion. In a separate, data development approvals in Australia able to record a rise in the 3rd in 4 months in November, as lower interest rates encourage growth plan apartment projects. "China data, both imports and exports, has managed to surprise a lot of people," said Mike Jones, currency strategist at Bank of New Zealand in Wellington. "And it has added to investor optimism the economy will rebound in China, so that pushing the Aussie dollar to move higher."
Sterling Recovers After BoE policy meeting
Pound rebounded against the U.S. dollar after the Bank of England kept its monetary policy unchanged. BoE to maintain its key rate at a record low of 0.5% and raised its bond purchases from current levels, £ 375 billion. On the other hand, consumer spending and a stagnant British output still weak growth implies spare capacity in the economy. So keep expectations of further monetary easing in the coming months. Meanwhile, chief market economist at National Australia Bank, Tom VOSA, argues that despite the decline in output will increase expectations of further QE, the decision to expand its asset purchases likely will be launched after Mark Carney took over as the Governor of the BoE on July 1.
