One enters it, the other thinks of it
- The ECB does not exclude to buy government bonds if... The BoJ does it on a large scale.
Eurozone
It’s now or never? On black boxes and ECB quantitative easing
- The question regarding QE including government bonds purchases is an increasing urgent issue. Acting swiftly has a number of disadvantages and risks and is also politically sensitive. But waiting could be even riskier.
France
Recovery possible
- Growth in France was stronger than expected in the third quarter. For the time being, the growth prospects for the fourth quarter look less rosy. Hopes of a recovery, which have been confounded until now, are gradually expected to take shape in 2015.
Japan
Abenomics deeper in uncharted waters
- To prevent government spending spiralling out of control, the BoJ will continue to buy treasury bills and JGBs even after reaching the inflation target in 2016 in order to keep interest rates low. The yen is likely to weaken further in the medium term.
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Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.