U.S. consumer price index rises to 0.2% in October, increases likelihood for Fed rate hike

The costs of food, gasoline, shelter and medical care rose last month, yet inflation continues to run at low levels ahead of a December Federal Reserve meeting to consider raising short-term interest rates for the first time in nearly a decade. The consumer price index rose 0.2 percent in October after falling the prior two months, the Labor Department said Tuesday. Prices at the pump advanced 0.4 percent last month, but gas costs have plunged 27.8 percent from a year ago…

Fed should wait for firm signs of rising inflation, stronger labor market before hiking rates: IMF paper

The U.S. Federal Reserve should wait to see firm signs of rising inflation as well as a stronger labor market before hiking benchmark interest rates, an International Monetary Fund paper said on Thursday. In a report prepared for the upcoming Group of 20 meeting in Turkey, IMF staff said spare economic capacity and very low inflation justified keeping monetary policy loose in most major advanced economies…

‘Next step’ for U.S. is to start gradually increasing rates: Fed’s Williams

Now that the United States is closing in on full employment and inflation is likely to rise to target levels, the “next step” should be to start gradually increasing rates, a top U.S. central banker said on Saturday. “I do think it makes sense to gradually remove the policy of accommodation that helped get the economy to where we are,” San Francisco Federal Reserve Bank President John Williams told the Arizona Council on Economic Education…

Switzerland shows consumer prices go hand in hand with steady growth, low unemployment

It’s as close to an economic consensus as you can get: Deflation is bad for an economy, and central bankers should avoid it at all costs. Then there’s Switzerland, whose steady growth and rock-bottom unemployment is chipping away at that wisdom. At a time of lively global debate about low inflation and its ill effects, tiny Switzerland—with an economy 4% the size of the U.S.—offers a fascinating counterpoint, with some even pointing to what they call “good deflation.”…

U.S. retail sales edge up 0.1% in September, producer prices hit 8-month low

U.S. retail sales barely rose in September and producer prices recorded their biggest decline in eight months, raising further doubts about whether the Federal Reserve will raise interest rates this year. The weak reports on Wednesday were the latest suggestion that the economy was losing momentum in the face of slowing global growth, a strong dollar, an inventory correction and lower oil prices that are hampering capital spending in the energy sector. Job growth braked sharply in the past two months…

ECB paves way for QE expansion as it cuts growth, inflation forecasts

The European Central Bank cut its inflation and growth forecasts for the euro zone on Thursday and its president said things could get worse. The euro fell 1 percent on the moves and comments, hitting a two week low. Mario Draghi, the ECB president, pledged to beef up or prolong the bank’s bond-buying program if the picture indeed darkened further, although he said no one on the bank’s Governing Council had argued for it now…

The People’s Bank of China likely to ease monetary policy again by year’s end

China’s central bank is highly likely to ease monetary policy again by the end of this year, according to economists surveyed by Reuters, as it seeks to support a rapidly cooling economy and calm financial markets. The People’s Bank of China cut interest rates and lowered the amount of reserves banks must hold for the second time in two months on Tuesday, acting amid pressure from a global stock market rout and massive outflows from its markets…

Euro zone inflation up 0.3% in May, rises for first time in six months

Eurozone consumer prices rose for the first time in six months during May, a significant victory for the European Central Bank in its campaign to avert a slide into deflation that could have derailed the currency area’s fragile economic recovery. Still, analysts said that the improvement in inflation—which is still far below the ECB’s target—won’t be sufficient to alter the bank’s plans to pump over €1 trillion ($1.09 trillion) into the eurozone economy in €60 billion monthly increments until at least September 2016…

Kuroda says BOJ is making progress on raising Japanese inflation

WAYZATA, Minn.—The Bank of Japan ’s leader said his institution is making real progress in its efforts to raise Japanese inflation back toward desired levels.
Gov. Haruhiko Kuroda, in a speech here Sunday, said based on recent data, “there is no doubt that the underlying trend of inflation has improved markedly” since the central bank began aggressive efforts to stimulate the economy…

UK CPI y/y | April 14, 2015 | Currency Trading

UK CPI y/y release could provide some directional push for the Sterling after seeing a volatile market in the past couple of weeks.  If we get our tradable deviation, we should see plenty of market reaction and our trade plan should work out as planned. 4:30am NY Time UK CPI y/y Forecast 0.0% Previous 0.0% […]

UK CPI y/y | March 24, 2015 | Currency Trading

UK CPI y/y release could provide some directional catalyst for the Sterling. With USD seemingly retracing its recent gains, a weak release would be what the USD needs to push back to the LONG direction again, at least against the Sterling. 5:30am NY Time UK CPI y/y Forecast 0.1% Previous 0.3% DEVIATION: 0.3% (BUY GBP […]

US FOMC Interest Rate | March 18, 2015 | Currency Trading

US FOMC Interest Rate decision today is the main focus of the week; however, considering that Feds will probably not hike rates before the mid of the year, especially after recent Fed Yellen’s Congressional testimony, today could just be a repeat of last meeting (i.e. a non-event)… Of course, we’ll be watching the live webcast […]

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