Summary
Euro zone inflation has been on a steady decline for two years. The last time the annual rate was at the 2.0 percent ECB target was January 2013. Why do central banks around the world consider low inflation such a danger? Is it because it flirts with deflation and the dread effect of postponed consumption on an already weak economy or are there connections to the massive debt overhang of many modern governments? What would seem to be a boon for the consumer is anathema to economic planners. Eurozone annual CPI was 0.3 percent in November and the full effect of an almost 40 percent drop in crude oil prices has yet to be felt in consumer prices. Is deflation the great historical threat and is the eurozone tilting toward the abyss? Join us for an examination of the historical and theoretical antecedents of deflation and a discussion of its effect on ECB and Fed policy and their currencies.Latest Live Videos
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.