Summary
Economics is not called the dismal science for nothing. A generation ago inflation was the great enemy of central bankers and prosperous economies. In the early 1980s Paul Volker Chairman of the Federal Reserve pushed the Fed Funds rate to 20 percent to end the crippling inflation of the previous decade. His success led central banks around the world to adopt inflation targets and the trend in worldwide inflation has been declining ever since. Low, stable inflation would seem to benefit business, individuals and the overall economy. But quite suddenly, we are in a world where inflation is too low and the world’s major central banks are desperately trying to induce rising prices. How did economics arrive at this pass? Join us for a tour of the history of inflation and the economic response.Latest Live Videos
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.