m3n4.net August 18, 2018

European Central Bank seeks balance to keep low-inflation recovery on rails

28 January 2018, 12:16 | Vera Richards

Surprise Uptick in UK Earnings Dents Euro to Pound (EUR/GBP) Exchange Rate

European Government Bonds: Too Early For The ECB To Announce A Change In Guidance

With the European Central Bank staying away from what appears to be the early stages of a currency war - following US Treasury Secretary Steve Mnuchin's comments in Davos - the Euro was able to surge above 1.2500 versus the US Dollar for the first time since December 2014.

"While it is by now widely recognised that euro area growth is strong, the extent of this is still being hugely underappreciated", JPMorgan economist Greg Fuzesi said before the rate decision.

Speaking in Davos, where he is attending the World Economic Forum, Mr Trump said "frankly nobody should be talking about the dollar's value" before adding he supported a strong United States currency. The company's bottom line was hurt by rising commodity costs and unfavourable currency exchange rates, and it expected more pain to come from higher raw material prices in 2018.

And he said recent exchange rate volatility had been sparked by "the use of language that doesn't reflect the terms of reference we have agreed".

Apple Reroutes Employee Buses After Alleged Attacks With Pellet Guns
Five of the attacks happened in the morning and evening on Tuesday between Highway 84 in Woodside and Highway 85 in Cupertino. However, California Highway Patrol officer Art Montiel confirmed that an investigation with Apple is still ongoing.

'We believe 2018 could again be a year in which Eurozone growth beats expectations, but still inflation is not picking up as wage growth remains weak. The region gathered momentum in January, with the Purchasing Managers' Index suggesting quarterly growth of 1 percent and German business confidence at a record high. The GBP/EUR exchange rate dropped a cent and the EUR/USD rate moved to a 3 and a half year high.

From this month, the European Central Bank has halved the amount of cheap cash it is pumping into the system under its quantitative easing programme to 30 billion euros ($37.3 billion) per month, and now envisages halting asset purchases in September. During the press conference, ECB President Draghi carried on with dovish tone, noting in particular that domestic inflationary pressures continue to be weak.

The currency hit the $1.25 level against the USA dollar around 2:00 p.m. London time and was on track for its biggest weekly rise since May of a year ago.

The professionals' predictions now see inflation hitting 1.5 percent this year, 1.7 percent in 2019 and 1.8 percent in 2020.

Angelique Kerber smashes Maria Sharapova to make fourth round
Kerber, who had a shocking 2017, looked at her best for some time as she polished off Sharapova in 64 minutes. Dabrowski and partner Mate Pavic of Croatia defeated Australians Alex Bolt and Lizette Cabrera 6-3, 7-5.

Quizzed on the chances of ending stimulus, Draghi said there was a need to distinguish between a sudden stop, extension of the asset purchase programme and gradual tapering. "We're purely trading off Europe", said Tom di Galoma, managing director at Seaport Global in NY.

Mr Draghi cited an International Monetary Fund communique from past year, signed by the U.S., which said: "We will refrain from competitive devaluations, and will not target our exchange rates for competitive purposes". "We look at inflation, that is our main concern".

After the close of trading on Thursday, results are expected from Intel Corp and Starbucks Corp.

Yet even as the euro zone economy roars ahead, a strong euro threatens to dampen inflation and endanger the work done by the European Central Bank during years of over 2 trillion euros worth of stimulus.

Bitcoin falls below $10K for first time since November
Bitcoin moved back to the $12,000 mark in Thursday's trade, signifying a growth of more than 20% compared to the previous close. More than 80 percent of the total number of Bitcoin has already been mined, according to a new report .

Other News

Trending Now

Microsoft Releases $189 Laptops For Schools
It has also partnered with textbook giant Pearson PLC to develop learning materials for the Windows Mixed Reality headsets. Other than these two laptops, Microsoft also announced two laptops from its biggest partner in emerging economies - JP.

India weather early storm from South African quicks in third test
The decision looked a bit unfair as the review said the ball was kissing the leg stump and the on-field umpire's decision stood. He tried to hit the ball on the rise only to miss the handsome inswinger from Bhuvneshwar Kumar .

Tiffany Haddish steals the scene - even reading Oscar nominations
Fellow Brit Jacqueline Durran (pictured) is also up against herself in the best costume design category, for the same two movies. Peele is also the fourth black writer to be nominated for best original screenplay , and the first in more than 25 years.

McDonald to become Sinn Fein President on February 10th
Gerry Adams has been the president of the party since 1983 but in 2017, announced he would be resigning from his post. She also said: "I believe we are capable of achieving anything that we set our minds to".

Landscaper charged with murders of missing men remanded into custody
On Thursday, police said new evidence surfaced this week that gave them a "definitive link", but they did not elaborate further. Kinsman, and we believe he is responsible for the deaths of other men who have yet to be identified", Toronto Det.

Kristaps Porzingis, Karl-Anthony Towns among All-Star reserves
The NBA has scrapped the traditional All-Star Game format that pitted the Eastern and Western Conferences against each other. The 2018 NBA All-Star reserves - as selected by league head coaches - were leaked ahead of Tuesday's announcement.

Ruth Bader Ginsburg Opens Up About Her 'Saturday Night time Stay' Doppelganger
Ginsburg noted that this was just one of many experiences she had of sexual harassment, which she did not divulge or elaborate. The conversation then turned towards her thoughts on the #MeToo movement as a spearhead of women's rights over the decades.

Failure by US Senate to agree on new budget forces govt shutdown
The Office of Management and Budget estimated that roughly 850,000 employees were furloughed per day at the peak of the shutdown. In recent weeks Dreamers and pro-immigration activists have been holding protests and sit-ins in Washington to pressure U.S.

New Pentagon strategy takes aim at Russia, China
US Defense Secretary James Mattis has spelled out in clear language what had been hinted at by US National Security Advisor H.R. The US military's competitive edge has eroded "in every domain of warfare" he said, partly because of inconsistent funding.

Real Madrid next manager odds: Who is favourite to replace Zinedine Zidane?
The Argentine has a contract until 2021 and the plan is for him to lead Spurs into their newly renovated stadium next season. Zidane's immediate future hinges on the upcoming Champions League tie against Paris Saint-Germain.