Will the ECB Minutes solve the Euro´s controversy?
The world indices are descending from record highs, while the European investors are tensely waiting for the ECB meeting protocol to get more information about the regulator’s intentions to curtail the monetary stimulus.
On Wednesday, Trump presented a bill in which he proposed significant tax breaks for both individuals and legal entities. The reform implies a reduction in income and corporate taxes, as well as the abolition of certain tax benefits.
The Dollar is back on growth track. But for how long?
It is unlikely that growth of new short positions will happen before the Friday’s inflation data. The decline in global risks has prompted investors to take interest in risky assets, forcing part of open sales to be closed against the Dollar.
The FED can not bring the inflation back to a comfortable level and investors have realized that the regulator might want the labor market to deliberately overheat in order to understand, where the Phillips curve will work again.
It seems as if the FED head used the Jackson Hole platform for “justification”, speaking in defense of his own post-crisis reforms, free trade, globalization. Take a look at all the main points that were presented at the meeting.
What surprises did the Central Bank executives have for the investors?
To investors great regret, Mario Draghi refrained from discussing monetary policy in the speech at Jackson Hole, however, from the Federal Reserve head Janet Yellen, we could expect more constructive comments.
The Risk attitude in the global market is very “friendly”, as VIX went below 10 points – a historical record of calm. Gold and the Japanese Yen are trading in the red zone despite the weakness of the US currency.