Deflation pressure abounds

28 October, 2015

Further evidence yesterday suggested that central bank hawks are likely to remain in the minority following weaker than expected data from both sides of the Atlantic with UK GDP and US consumer confidence that both disappointed. Overnight the Aussie has taken a nose dive following a much weaker than expected inflation release and once again we see the tumble in oil prices applying further deflationary pressure around the globe. The current inflation issue is causing a dilemma for central banks and making their job of setting monetary policy by looking two years down the line very difficult. For a number of months inflation had expected to pick up following the slump in commodity prices that commenced a year ago, however there’s been no indication of that just yet and as a result central banks remain welded to accommodative mode rather than tightening, as evidenced most recently by the ECB.

This is why today’s focus will be on the outlook for US inflation at this evening’s FOMC rate decision and in particular the emphasis they put on deflationary pressures from external factors. Depending on what they say later this could be the final nail in the coffin for any chance of a 2015 rate hike. Note also soon after the FOMC that the RBNZ is expected to keep rates on hold and maintain a very dovish tone.


Source link  
Oil Inventories to Show a Draw

Expectations (Apr) are expected to be released with a prior reading of 16.7. This data has been weakening since a reading of 52.0 was recorded in...

Chances of RBA Rate Hike

NZDUSD bucked the trend overnight, as most other currencies managed to retrace some of their declines against the USD. The pair hit fresh...

Consumer Sentiment Index Close to Higher

US Fed Boston President Rosengren is due to deliver the keynote speech on the economic outlook, at the Greater Boston Chamber’s Economic Outlook Breakfast...


Chinese president soothes worries

With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers...

Markets fall after more tariffs proposal

Friday's session is expected to be volatile, with Non-Farm Payrolls (13:30 UK Time) ahead and President Trump’s proposal for an additional $100B...

Korea gets exemption on steel tariffs

The US and South Korea have reached agreement on a Trade deal that comes with the added bonus for South Korea of a permanent exemption from...


EU Publishes List of Tariffs on US Goods

Over the weekend, the EU published a list of tariffs on US products in response to the US tariffs on Steel and Aluminium. The total value of EU tariffs...

Consumer Price Index and Housing Starts

Eurozone Consumer Price Index – Core (YoY) (Feb) will be released. The consensus points to an unchanged value of 1%. Consumer Price Index...

USD Weakens as Risk-Off Returns

Yesterday, the US announced Tariffs on Steel and Aluminium, which prompted an outcry from various global leaders and an acceleration in the...


In the past 24 hours Bitcoin has gained 4.91% and reached $9268.1. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.3763% and is now at $1.218. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 16.25% and is now at $661.013. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro84%
5FIBO GroupFIBO Group82%
6FXCMFXCM70%
7XMXM68%
8Fort Financial ServicesFort Financial Services67%
9Alfa-ForexAlfa-Forex66%
10HotForexHotForex66%
  


Share: