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
AUD/USD extends rally as buyers’ eye 0.6700 ahead of Aussie’s job data
The Australian Dollar surged more than 1% against the US Dollar on Wednesday after data showed that consumer inflation moderated in April, with the underlying Consumer Price Index edging lower for the first time in six months. As Thursday’s Asian session begins, the AUD/USD trades around 0.6695.
USD/JPY trims losses below 154.50 following Japan’s GDP data
USD/JPY trims losses near 154.45 during the early Asian session on Thursday. The softer US CPI inflation data has exerted some selling pressure on the US Dollar. However, the major pair recovers modestly following the recent weaker-than-expected Japan’s Gross Domestic Product in the first quarter of 2024.
Gold rally continues with buyers eyeing $2,400 as inflation recedes
Gold price extended its uptrend for the second straight day on Wednesday and hit a three-week high of $2,390 after data revealed by the US Bureau of Labor Statistics showed inflation is ebbing, increasing the odds for a Federal Reserve rate cut in 2024.
Will CPI report showing inflation eased in April push BTC to $70K?
Bitcoin price jumped by 5% on Wednesday, seeing the American session outperform the Asian session for the first time in a while. Tailwinds sprouted fron US inflation release.
Australian Unemployment rate set to increase for second straight month
The Australian Unemployment Rate is expected to continue rising in April. Employment Change could post a modest improvement after March’s slump. AUD/USD could run past 0.6700 on an upbeat employment report.