And if global currency markets found the Scottish independence vote worrying, the prospect of a 2017 referendum in the United Kingdom on continued membership in the European Union will be terrifying
The tepid demand raises the odds that the bank will have to begin a program of asset purchases sooner rather than later in order to hit its goal of expanding its balance sheet back to the $3 trillion mark.
The pound has dropped to its lowest level in nine months as the financial markets look at the possibility of an independent Scotland that still uses the pound as its currency and the Bank of England as its central bank.
Think of it as a reminder that the Federal Reserve isn’t going to rush to start raising interest rates in 2015. Today the Labor Department reported that the U.S. economy had added just 142,000 jobs in August
Moves of this magnitude won’t have any effect on EuroZone growth rates or inflation. Instead they’re best seen as a promise that next meeting the ECB will begin a program of asset purchases.
In the long run the EuroZone’s central bank has a problem: It’s not clear that even any of the radical and controversial (inside the bank anyway) measures the bank seems to be contemplating would actually do anything
A weekend of bad economic news has put pressure on central banks in the EuroZone, China, and Japan to do something to stimulate economic growth just as U.S. economic growth looks stronger
Everything is in motion this morning as the conflict in Ukraine moved toward an all-out, but thoroughly denied, invasion of the east of the country by Russian troops, tanks, and artillery.
The U.S. dollar fell and the euro climbed for the first time in four days as named—German finance minister Wolfgang Schaeuble—and unnamed sources—said that the currency markets have overreacted to comments by Mario Draghi.
The rally in European government bonds continued as a government crisis in France increased odds that the European Central Bank will move to adopt a Federal-Reserve-style program of asset purchases
