Uneven Growth Could Put Central Banks In A Collision Course

The global economy is plodding ahead in fits and starts as the largest countries struggle to achieve consistent growth.

Europe is faltering again. Japan is suddenly surging. China is cooling. The U.S. is strengthening.

In the background, central banks are aiming to administer just the right amount of stimulus — not too much, not too little. Their efforts have yet to benefit many ordinary people facing job shortages and stagnant wages.

The unevenness of the global recovery was thrown into sharp relief Thursday, when the 18 European nations that use the euro reported unexpectedly weak growth for the year’s first three months. A separate report said Japan’s economy grew in that same quarter at the fastest pace in nearly three years.

Fresh data from the United States was mixed: Factory output declined. But fewer and fewer people are seeking unemployment benefits, a sign that solid hiring should continue.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza