Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.
Video courtesy of ForexCT – A leading Australian forex broker, liscensed by the Australian Securities & Investments Commission, offers the MetaTrader4 and PROfit Platform to retail traders. Other services include Segregated Accounts, Trading workshops, Tutorials, and Commodities trading.
The price of precious metals like Gold, Silver, and Platinum found support this past week despite the rising strength of the US dollar, the currency in which such assets are valued. Gold has been trading with rather mild price action since this past April, but traders have been awaiting price resurgence due to the rampant increase in risk aversion due to rising tensions from Greece and dismal jobs reports out of the US. So far, this resurgence appears to be gaining momentum as these words are being written.
The Canadian dollar was seen in decline last week as traders began to view the lackluster performance of the US economy these past several weeks as a sign that regional economic growth will be limited. The USD/CAD moved from its two-month low of 0.9563 to 0.9693 on Wednesday before consolidating near its current price level of 0.9625.
Though news from Canada has been primarily bullish, forex traders investing in the CAD, charmingly known as the Loonie, have been predisposed to short the region in general as the US economy falters. Assisting this shift was a dismal NFP jobs report out of the American economy which revealed sluggishness in US employment growth that may affect economic and financial outlook for the US and its neighbors.
As for today, the US economy will be absent from the economic calendar, but Canada is set to release two significant reports which may impact the Loonie greatly. The first is a housing report expected at 13:15 GMT which is forecast to show continued growth along the lines seen last week.
At 15:00 GMT, the Bank of Canada (BOC) will release its Business Outlook Survey that should summarize the points made above more clearly. The CAD may be consolidating, but if the BOC report can capitalize on the independent growth of Canada beyond American economic prosperity, the currency could see some gains today.
The euro (EUR) was seen trading lower last Friday following news of pessimistic growth in the US job sector. Against the US dollar (USD) the euro was trading somewhat bearish in late trading as shifts into safe-haven investments pulled money out of the euro and into stores of value. The EUR/GBP, however, was more straightforward, with a severe downturn coming Thursday, followed by even more bearishness on Friday. The pair ended the week moving from 0.9050 to 0.8860.
It appears the EUR also moved mildly lower versus the Japanese yen as safe-haven assets across the board experienced a rise due to increased market pessimism. Today’s industrial production figure out of France may see the region’s second largest economy returning to growth in the industrial sphere, but should the data disappoint market forecasts, a quick swing into additional safety will likely ensue.
Sentiment across the euro zone has turned negative, with many analysts and economists expecting a move towards safety by traders this week. Last Friday’s NFP jobs report out of the American economy forced a reevaluation by several large investors who had become hopeful after ADP published positive growth in the private sector. Any more bearishly-leaning news out of either economy will likely pull down on the EUR even further as investors flee risk.
The Japanese yen (JPY) was seen trading moderately higher versus most other currencies last Friday after news began to shift many traders back into risk averse assets. The yen has been a top performer these past several months considering many traders turn to the island powerhouse in times of risk aversion; a sentiment of high frequency these past four years.
Given this understanding, traders witnessed a turn towards safety after last Friday’s NFP report from the United States. The resultant move into safe-haven assets has helped to lift the JPY as traders turn to its record low interest rates as a way to store value in times of uncertainty. Japan’s economy is publishing several reports this morning, all of which will likely impact the value of the yen very little. Traders should keep an eye on data out of Europe and the United States for signals on the direction of risk appetite this week.
The price of precious metals like Gold and Silver found support this past week despite the rising strength of the US dollar, the currency in which such assets are valued. Precious metals bear their name as a result of their traditional store of value in times of uncertainty. Gold has been trading with rather mild price action since this past April, but traders have been awaiting price resurgence due to the rampant increase in risk aversion due to rising tensions from Greece and dismal jobs reports out of the US.
As investors seek safety, the value of gold and silver, which have been seen trading with mixed results, jump to a 2-week high of $1542.60 and $36.60 per troy ounce, respectively. A sudden jump in dollar values due to this week’s risk averse environment has so far done little to suppress this price movement as all three assets serve as traditional stores of value. Should risk sentiment hold steady this week, the prices for these precious metals may continue to find support as the week moves ahead.
After a false breakout higher from the triangle chart pattern the EUR/USD is approaching the rising support line off of the May low at 1.4160. Falling daily and monthly stochastics suggest the next move will be to the downside. A break here and the next major support is found at 1.3970. The 200-day moving average at 1.3905 may also prove supportive. Below this key technical mile marker the rising trend line from the 2010 May low comes in at 1.3710 and traders may see buying interest at this level. To the upside the July 7th high at 1.4370 could be supportive, as well as the falling resistance off of the May and July highs at 1.4530. A close above the June high at 1.4700 would likely signal a shift in momentum to the upside.
Cable is caught in a 220 pip range as the pair struggles to stay above its 200-day moving average and its initial support at 1.5910. A move lower and the next support to enter the picture stands at the late January low of 1.5750, not far from the 38% Fibonacci retracement from the 2010 May to 2011 April move. Support is also found at 1.5650 which has served as both support and resistance in October and in December of last year. The consolidation pattern is capped at 1.6140 where the neckline from a head and shoulders pattern rests. For traders who are not yet short this would be a point from which to sell a potential rally. The head and shoulders reversal chart pattern shows a measured move which could take the GBP/USD lower to 1.5370.
A series of higher highs and lower lows has created a bullish channel on the daily chart but the pair will likely remain locked in a range that has contained the USD/JPY since early June. A number of resistance levels will provide ample opportunities to sell into any gains, a play that is in-line with the long-term trend. The top of the channel is found at 81.50 and is close to the 100-day moving average. Additional resistance is located at the May high of 82.20 and the falling trend line from the 2007 high comes in at 82.80. The bottom of the channel could prove to be supportive at 80.45 but a break here could test the May low at 79.50.
The daily chart provides an interesting technical picture for the Swissie. The pair is flirting with its 50-day moving average at 0.8550, a technical indicator the pair has not traded above since February. A potential head and shoulders bottom reversal may also be forming with the neckline falling from the mid-June highs and the high from July 1st. A measured move from the pattern suggests potential gains of 260 pips and a reversal would likely target the mid-May lows at 0.8755 and the March 16th spike lower which is also a Fibonacci retracement target at 0.8845.
Spot crude oil prices have moved higher from a falling wedge pattern that appeared on but have stalled at the psychological $100 price level. Given the measured move from the chart pattern and the current resistance levels, a likely target would be the $104.50-$105.50 range between the mid-May high and the mid-April low. Support is found at the falling wedge line which comes in just below $92.50. Forex traders who missed the initial breakout may be patient and wait for a pullback to the wedge line where the pair could bounce higher which often occurs with a wedge chart pattern.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
By Harjeet
The steady good performance of Indian economy is attracting overseas investors to do business in India. Even the existing international companies are increasing their size of business in India.
Most of the Investment Strategies keep in mind while doing the investment, around factors like liberalised economy centre is a risk-return trade off for a potential investor. The Department of Industrial Policy and Promotion has opened more fields for FDI like .
Indian government’s friendly FDI policy, stability of policy and no reversibility approach is helping in attracting more foreign direct investment in India. The Department of Industrial Policy and Promotion (DIPP) is planning to open more fields for FDI like the multi-brand retail and defence sectors for FDI. The DIPP is also involved in preparing a national manufacturing policy to increase the share of these activities in the GDP to 24 per cent from 16 per cent at present.
Foreign direct investment in India was allowed in certain sectors through the automatic route by the Government, even though there could be a cap for the maximum amount of investment. For instance investments in the airports sector is allowed up to 100 per cent, but any percentage above 74 per cent would require government approval. Similarly for the telecom, FDI allowed is 74 per cent, but for any FDI above 49 per cent government approval is needed. In recent times the government gave permission for some more sectors for FDI .FDI up to 51 per cent was allowed for retail trade, subject to prior permission.
The other sectors which came under the purview of similar investments are manufactures of industrial explosives, dangerous chemicals, establishing Greenfield airports and cash and carry wholesale trading and export trading. Investment in certain specified areas like Export Processing Zones, Electronic Hardware technology Park and Software Technology Park are also included in the gamut of automatic route. It is interesting to note that the investments in India are being targeted from all parts of the globe. The level of impact for the global recession was such that there was a surge of investments were directed towards the developing countries. Assessing them as the hub of consumption, numerous deals were struck, policies modified and so on, the investments was a part of the companies to recover from the recession. One sector, which was heavily targeted by the investors, which saw a surge, was real estate – basically formulated on basis of the large influx of investments coming into India.
Real estate in India has seen an unprecedented growth in the last few years. Increasing demand for commercial and residential properties and liberalisation government policies has lessened the need for permissions and licenses for starting their real estate projects. According to a latest report of an industry body and Ernst and Young, India is ranked as the 5th most attractive destination from the point of future real estate investments. Although China has topped the list but global investors have more faith in Indian market because of its more democratic nature.
Harjeet is an Indian – born mass-market novelist, who covers the world internet related topics . He writes columns and articles for various websites and internet journals in the domain of Indian economy and Investment Opportunities.
By CountingPips.com
The latest Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that large futures speculators raised their bets against the US dollar after betting in favor of the dollar the past few weeks. Non-commercial futures positions, those taken by hedge funds and large speculators, were overall net short the US dollar by $15.08 billion against the other major currencies as of July 5th, according to a report published by Reuters.
Last week’s data is an increase from the total short position of $12.44 billion registered on June 28th, according to the CFTC COT data and calculations by Reuters which calculates the dollar positions against the euro, British pound, Japanese yen, Australian dollar, Canadian dollar and the Swiss franc.
This week’s notable changes were British pound sterling positions declining sharply lower on the short side to the lowest position since July 2010 while Mexican peso positions rose sharply after a few weeks of settling at the lowest levels since September 2010.
ForexCycle.com – EURUSD continues its downward move from 1.4577, and the fall extended to as low as 1.4197. Resistance is at 1.4305 followed by 1.4375, as long as these levels hold, downtrend could be expected to continue, and next target would be at 1.4100-1.4150 area.
Central Bank News – This report outlines where inflation is tracking in countries where the central bank has an inflation target. Central Bank News has compiled a table of countries/central banks that have publicly announced an official inflation target. In some cases the target is a government target, but in many cases it is one of the central bank’s key performance indicators.
Elliott Wave International – When Ralph Nelson Elliott discovered the Wave Principle nearly 70 years ago, he explained how social (or crowd) behavior trends and reverses in recognizable patterns. You can learn to identify these patterns as they unfold in the financial markets, and use them to help anticipate where prices will go next.
The chanting may be louder and the protests more violent but like Greece, the UK is suffering through its own austerity program. However, unlike Greece which is having restraint forced upon it in exchange for emergency funding from the European Union, the UK is engaging in a self-imposed program of spending cuts and tax hikes in an attempt to balance its budget.
The past week in monetary policy saw interest rate decisions from 14 central banks around the world, of which 7 made changes in their monetary policy settings. Those that increased interest rates were: Sweden +25bps to 2.00%, China +25bps to 6.56%, the EU +25bps to 1.50%, and Denmark +25bps to 1.55%. While those that cut rates included Vietnam, which cut its OMO rate -100bps to 14.00%, and Ghana -50bps to 12.50%.
You can find low-risk, high-probability trading opportunities by trading with the trend. The trick is to find the end of market corrections, so you can position yourself for the next move in the direction of the trend.
EURUSD continues its downward move from 1.4577, and the fall extended to as low as 1.4197. Resistance is at 1.4305 followed by 1.4375, as long as these levels hold, downtrend could be expected to continue, and next target would be at 1.4100-1.4150 area. However, a break above 1.4375 will indicate that a cycle bottom has been formed on 4-hour chart, and the fall from 1.4577 has completed, then the following upward move could bring price back to 1.4450-1.4500 area.
By CountingPips.com
The latest Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that large futures speculators raised their bets against the US dollar after betting in favor of the dollar the past few weeks. Non-commercial futures positions, those taken by hedge funds and large speculators, were overall net short the US dollar by $15.08 billion against the other major currencies as of July 5th, according to a report published by Reuters. The data is an increase from the total short position of $12.44 billion registered on June 28th, according to the CFTC COT data and calculations by Reuters which calculates the dollar positions against the euro, British pound, Japanese yen, Australian dollar, Canadian dollar and the Swiss franc.
This week’s notable changes were British pound sterling positions declining sharply lower on the short side to the lowest position since July 2010 while Mexican peso positions rose sharply after a few weeks of settling at the lowest levels since September 2010.
EuroFX: Currency speculators increased their net long positions for the euro against the U.S. dollar for a second straight week. Euro futures positions rose to a total of 43,194 long contracts as of July 5th following a total of 32,987 long positions on June 28th.
The COT report is published every Friday by the Commodity Futures Trading Commission (CFTC) and shows futures positions as of the previous Tuesday. It can be a useful tool for traders to gauge investor sentiment and to look for potential changes in the direction of a currency or commodity. Each currency contract is a quote for that currency directly against the U.S. dollar, where as a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and net long position expect that currency to rise versus the dollar. The graphs overlay the forex spot closing price of each Tuesday when COT trader positions are reported for each corresponding spot currency pair.
GBP: British pound sterling positions continued to decline lower on the short side as of July 5th and fell to their lowest position since July 13, 2010. Pound contracts decreased to a total of 31,669 net short positions following a total of 18,349 short contracts on June 28th.
JPY: The Japanese yen net contracts edged higher after a decline the previous week to a total of 14,327 net long contracts reported on July 5th. This follows a total of 13,623 net long contracts on June 28th.
CHF: Swiss franc long positions decreased for a fifth straight week as of July 5th. Franc positions fell to a total of 5,291 net long contracts following a net of 9,948 long contracts on June 28th. This marks the lowest level for franc positions in over a year.
CAD: The Canadian dollar positions rebounded slightly last week after declining to the lowest level since August of 2010 the previous week. CAD positions rose to a total of 6,821 long contracts on July 5th following a total of 1,863 short contracts on June 28th.
AUD: The Australian dollar long positions increased on July 5th after declining for two consecutive weeks. AUD contracts advanced to a total net amount of 63,336 long contracts as of July 5th. AUD positions had totaled 46,897 net long contracts on June 28th.
NZD: New Zealand dollar futures positions edged higher last week after dipping for two straight weeks. NZD contracts rose to a total of 18,986 long positions as of July 5th from a total of 18,364 long contracts on June 28th.
MXN: Mexican peso net long contracts increased sharply to 82,944 net long contracts as of July 5th from a total of 46,077 long contracts as of June 28th. Peso positions had been declining over the previous weeks and reached a 2011 low on June 21st.
COT Data Summary as of July 5, 2011
Large Speculators Net Positions vs. the US Dollar
EUR: +43194
GBP: -31669
JPY: +14327
CHF: +5291
CAD: +6821
AUD: +63336
NZD: +18986
MXN: +82944
This report outlines where inflation is tracking in countries where the central bank has an inflation target. Central Bank News has compiled a table of countries/central banks that have publicly announced an official inflation target. In some cases the target is a government target, but in many cases it is one of the central bank’s key performance indicators. Of the 32 countries that Central Bank News is monitoring, which have inflation targets; 24 last reported inflation above target, 1 had inflation below target, and 7 reported inflation within their target range. Note, the inflation figures in the table below are all on a headline, or gross, inflation basis.
Of those that saw inflation above target, the standouts were Serbia (14.7% in April-11 vs target range 3.5-6.5%), Georgia (13.5% in April-11 vs target of 6%), Romania (8.4% in May-11 vs target range 2-4%), and Armenia (9% in May-11 vs target 5.5%). Below target was Japan (0.3% in May-11 vs target 1%), which only just emerged from deflation on a headline inflation basis. Of the 7 countries with inflation at target, or within their target range, 5 were also on target at the end of 2010, while 2 were above target.
The chart below shows the change in inflation versus target, between the most recently reported inflation figures and the end of 2010 inflation figures (from the IMF). Of the 32 countries, 23 saw inflation go above target, or go higher above target, 4 saw inflation falling closer to target (2 fell into target range), while 5 saw inflation staying within target.
So one of the key highlights of this report is that most countries saw inflation increasing compared to their target. This is consistent with trends observed in another Central Bank News report on interest rate adjustments, where of 79 central banks covered, 32 made net increases to interest rates. Central bankers in most countries have had to work harder this year to contain inflationary pressures. However there also remains a core of countries with low inflation pressures, which helps explain the 40 central banks that made no net changes to interest rates in the first half of the year.
Much of the increase in inflationary pressures can be linked to the recent surge in commodity prices, with agricultural commodities driven up by structural pressures such as rising populations, and a string of adverse weather conditions which have impacted on supply. Energy prices have also been surging as cyclical pressures and geopolitical tensions have impacted on oil prices.
Another factor has been relatively strong aggregate demand in emerging markets, with 18 of the 24 countries with inflation above target being emerging markets. Indeed most emerging markets have reported stronger GDP growth through the global economic recovery than their developed market counterparts, with many seeing the risk of overheating rising above the risk of maintaining growth. One thing for certain is that the growth vs inflation balance will become more complex during the second half of the year.
What is inflation targeting?
Inflation targeting is an often cited goal of monetary policy, alongside other goals such as maximizing GDP growth, optimal employment, and financial stability. While there is some debate about the merits of inflation targeting, the benefits often cited of explicit inflation targeting include greater certainty and transparency of central bank interest rate decisions, price stability, and ultimately a lower neutral interest rate, provided inflation can be contained within a reasonable range. See the Wikipedia entry on inflation targeting for a summary of the issues and debate on explicit inflation targeting in monetary policy.
Source: www.CentralBankNews.info
Article source: http://www.centralbanknews.info/2011/07/inflation-targeting-in-rising.html
When Ralph Nelson Elliott discovered the Wave Principle nearly 70 years ago, he explained how social (or crowd) behavior trends and reverses in recognizable patterns. You can learn to identify these patterns as they unfold in the financial markets, and use them to help anticipate where prices will go next. Elliott Wave International has developed a free comprehensive online course — The Elliott Wave Tutorial: 10 Lessons on the Wave Principle — which describes these patterns and explains how they relate to one another.
To use the Wave Principle as you analyze the markets, you need a basic understanding of the Elliott method — the rules and guidelines, the literal shape of individual waves, even when the larger trend may turn.
To get you started, we’ve included an excerpt from the free Elliott Wave Tutorial, adapted from Elliott Wave Principle by Frost and Prechter, and a short video clip from the live presentation, Tips from a Pro.
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Here is your quick lesson excerpted from The Elliott Wave Tutorial:
In his 1938 book, The Wave Principle, and again in a series of articles published in 1939 by Financial World magazine, R.N. Elliott pointed out that the stock market unfolds according to a basic rhythm or pattern of five waves up and three waves down to form a complete cycle of eight waves. The pattern of five waves up followed by three waves down is depicted in Figure 1-2.
One complete cycle consisting of eight waves, then, is made up of two distinct phases, the motive phase (also called a “five”), whose subwaves are denoted by numbers, and the corrective phase (also called a “three”), whose subwaves are denoted by letters. The sequence a, b, c corrects the sequence 1, 2, 3, 4, 5 in Figure 1-2.
At the terminus of the eight-wave cycle shown in Figure 1-2 begins a second similar cycle of five upward waves followed by three downward waves. A third advance then develops, also consisting of five waves up. This third advance completes a five wave movement of one degree larger than the waves of which it is composed. The result is as shown in Figure 1-3 up to the peak labeled (5).
At the peak of wave (5) begins a down movement of correspondingly larger degree, composed once again of three waves. These three larger waves down “correct” the entire movement of five larger waves up. The result is another complete, yet larger, cycle, as shown in Figure 1-3. As Figure 1-3 illustrates, then, each same-direction component of a motive wave, and each full-cycle component (i.e., waves 1 + 2, or waves 3 + 4) of a cycle, is a smaller version of itself.
Every wave serves one of two functions: action or reaction. Specifically, a wave may either advance the cause of the wave of one larger degree or interrupt it. The function of a wave is determined by its relative direction. An actionary or trend wave is any wave that trends in the same direction as the wave of one larger degree of which it is a part. A reactionary or countertrend wave is any wave that trends in the direction opposite to that of the wave of one larger degree of which it is part. Actionary waves are labeled with odd numbers and letters. Reactionary waves are labeled with even numbers and letters.
Learn about the Elliott Wave Principle and how applying it to your market analysis can improve your investing and trading. Take the entire online course — The Elliott Wave Tutorial: 10 Lessons on the Wave Principle— FREE!Click here to access the 10 Lessons.
This article was syndicated by Elliott Wave International and was originally published under the headline Using Elliott Waves: As Simple As A-B-C. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
The chanting may be louder and the protests more violent but like Greece, the UK is suffering through its own austerity program. However, unlike Greece which is having restraint forced upon it in exchange for emergency funding from the European Union, the UK is engaging in a self-imposed program of spending cuts and tax hikes in an attempt to balance its budget.
In the three years prior to the 2010 British election, government spending and total debt ballooned to levels not seen since the Second World War. In the final few years of the previous government’s 13-year reign, spending had become so out of control that Britain found itself in violation of the debt and deficit limits imposed by the 1992 Maastricht Treaty.
Under the terms of the treaty, all European Union members must ensure yearly deficits do not exceed 3 percent of GDP while total debt must not exceed 60 percent of GDP. By the end of 2009, Britain’s deficit was more than 11 percent of GDP and the country’s accumulated debt stood at nearly 70 percent.
During the campaign period leading up to the election early last year, the Conservative party led by David Cameron made economic reform the center plank of the party’s election platform. While Cameron ultimately won the election to become Prime Minister, he needed the support of the third-place Social Democrats to form a coalition and gain the majority necessary to pass legislation. More on that later.
Coalition Delivers an “Austerity” Budget
Less than two months after forming the government the newly-minted Chancellor of the Exchequer, George Osborne, released a budget that Osborne described to the media as “tough but fair”. The main objective of the budget was to begin the process of balancing the books that the government claims will be accomplished primarily through spending cuts rather than tax increases. The government estimates it can accomplish the task within five years.
Despite the pledge to rely more on reduced spending as opposed to raising taxes, one of the leading elements in the budget released last June was to increase the Value Added Tax (VAT) to 20 percent from 17.5 percent. The budget also contained wide-ranging spending cuts starting with a cap on public sector wages and other programs designed to reduce overall spending.
The government has been forthright in admitting that these moves – while necessary to restore confidence in the economy – will be difficult in the short-term. An understatement perhaps for any of the 300,000 or so public sector workers who are expected to lose their job in the coming months. Private sector rolls could also suffer as the government reduces or even withdraws funds set aside for large-scale infrastructure projects.
To date, the employment outlook has actually improved in the months following the budget. Last May unemployment was pegged at 8 percent climbing to 8.1 percent by October – by the end of the first quarter of 2012 unemployment had fallen to 7.9 percent with the most recent reading for May placing unemployment at 7.7 percent.
Time will tell if the economy can continue to add jobs as the austerity measures take greater effect. Still, while employment has performed better than expected so far, wages themselves continue to be depressed. Wage increases are on-hold across the spectrum and while workers are certainly not enthusiastic about this reality, there is comfort in continuing to receive a regular pay cheque.
The impact of wage stagnation is further amplified, however, by rapidly rising price inflation. This past May higher energy and food costs, coupled with the government’s increase in the Value Added Tax, helped pushed inflation to more than twice the Bank of England’s 2 percent inflation target.
Despite the increase in price inflation, overall economic growth remains constrained. The latest projection by the National Institute for Economic and Social Research has Britain’s economy expanding by a mere 0.1 percent during the second quarter of the year. This has caused a dilemma for the Bank of England – should interest rates go up to deal with inflation at the risk of overall growth, or should interest rates remain low to promote growth while possibly driving inflation even higher?
Not surprisingly, the Bank of England’s Monetary Policy Committee (MPC) remains divided on the question but at this point at least, those arguing against rate hikes are in the majority. On Thursday, even as the European Central Bank was raising interest rates in the Eurozone by a quarter point, the Bank of England announced it would maintain the current 0.5 percent benchmark rate.
Can the Coalition Hold Itself Together?
As consumers feel the pinch from stagnant wages and rising inflation the government comes under greater pressure to ease up on the pace of change. The two parties forming the coalition are at opposite ends of the political spectrum making it difficult to imagine sufficient common ground can be found to maintain the arrangement for the duration of the current mandate. Indeed, it is a marvel that a full year has already passed with relatively little acrimony between the two parties.
Scott Boyd is a currency analyst and a regular contributor to the OANDA MarketPulse FX blog
