The volatility this week in the forex market continues to focus around the US Shutdown. Both US political parties continue to avoid meeting in the middle, although the latest on the negotiations hint that at least they agree and agreement is needed.
The Bank of England held rates this week. Mark Carney continues to be under fire for his assessment of the UK economy. Market participants are beginning to lose faith in his ability to read the economy as it appears it has turned a corner sooner than expected. The IMF would agree with that assessment as it has upgraded the UK’s growth forecast for the last quarter and next year. The Pound rose to 1.59 and all eyes will be on the US for an update on the fiscal crisis brewing.
There has been some talk about the ECB discontinuing their (Long Term Refinancing Operations (LTRO) program as financial institutions that took advantage of the program could begin to be penalized with higher capital requirements. This might mean the Central Bank will introduce another program to bridge the gap between the current low rate environment and the expected rate hike in 2015.
- Restructuring of Europe’s Banks to be Positive –
- Italian Senate Committee Votes to Expel Berlusconi –
- Greece to Exit Recession in 2014 –
- British Chambers of Commerce Optimistic About UK Economy –
- Rising German Exports Hints Of Greater Europe Recovery –
- Draghi’s Next Move Expected to be Easing Liquidity –
- Serbia Outlines New Austerity Reform Package –
- IMF Urges UK PM Osbourne to Increase Infrastructure Spend –
- Sarkozy Could do a Berlusconi And Have a Triumphant Return to Politics –
- ECB to Punish LTRO Taking Banks –
- German Industrial Output and Asian Trade Fears Suggest Slower Global Growth –
- IMF Outlook Forecasts 2.9 Global Growth in 2013 –
- IMF Raises UK Growth for 2013 and 2014 –
- Draghi Says ECB Guidance Allows Rate Cuts on Volatility –
- G20 Warns US About Effects of Default –
- IMF Says Central Banks Should be Independent With Banking Oversight –
- BoE Holds Rate and Monetary Stimulus Unchanged –
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