WASHINGTON — Consumers, fueled by job growth, cheaper gas and higher home values, would drive the U.S. economy through a global slump. That was the widespread hope just a few months ago. Now, doubts are growing that the United States can withstand economic pressures flowing from overseas. Economies in China, Canada, Brazil and Europe are struggling. Canada, the largest U.S. trading partner, is in recession…
1. SNB sight deposits rise after Swiss franc cap exit January 26, The amount of cash commercial banks hold with the Swiss National Bank rose the most since at least March 2013 last week, indicating the central bank may have intervened to keep the franc down despite scrapping a cap against the euro. Switzerland’s central […]
(Reuters) – The Federal Reserve on Wednesday said the U.S. economy was expanding “at a solid pace” as it largely looked through weakness overseas in a signal that it remains on track to raise interest rates later this year. The U.S. central bank repeated it would be “patient” in deciding when to raise benchmark borrowing costs from zero, where they have been stuck since late-2008…
A look into the future: David Cameron’s nightmare has come true; the slowdown in the global economy has turned into a second major recession within a decade. In those circumstances, there would be two massive policy challenges. The first would be how to prevent the recession turning into a global slump. The second would be how to prevent the financial system from imploding…
1. Fed likely to end QE at October meeting despite global slowdown October 20, Federal Reserve officials are taking a steady-as-she-goes stance as they prepare for their policy meeting this month, even though market volatility and uncertainties about the global economic outlook have rattled investors in recent weeks and led to some mixed messages from […]
Today’s Trade Result: +35 pips Let’s analyze the market and review the events that took place over the weekend during the Asian and the European market hours. We’ll analyze these news as we analyze the news and look into today’s US market session. We’ll focus on relevant news, public comments, and any high impact releases […]
1. Greece eyes budget surplus of 2.9% in 2015 October 6, Greece will aim to achieve a primary budget surplus of 2.9 percent of output next year, just shy of the 3 percent target set out under its bailout deal, its deputy finance minister said in an interview published Saturday. The target is part of […]
The Japanese Yen managed to regain its footing last week as global stock prices recorded their worst performance in over three months. The move played to the Yen’s appeal as a safe-haven asset, sought for its abundant liquidity and store-of-value properties (courtesy of near-zero inflation).
New Zealand’s central bank left interest rates unchanged and signaled no urgency to raise them until the global recovery strengthens, weakening the local currency it called overvalued.
The International Monetary Fund will cut its Irish economic growth estimate for this year and next as the outlook for its main trading partners, the euro region, U.S. and U.K. “worsened substantially.”
Asian currencies declined this week, led by India’s rupee and Malaysia’s ringgit, on concern Europe’s sovereign-debt crisis and a faltering U.S. economic recovery will hurt exports and deter investment in emerging markets.