News Regulators 

Draghi: ECB Faces Gaps in Understanding New Realities

“Policy actions undertaken in the last 10 years in monetary policy and in regulation and supervision have made the world more resilient” writes Min Read for reuters.com. “We must be aware of the gaps that still remain in our knowledge,” Draghi said in Lindau, Germany, in a speech that did not discuss current monetary policy.LINDAU, Germany (Reuters) – Unconventional monetary policy is a success, but gaps in understanding the relatively new tools remain, European Central Bank President Mario Draghi said on Wednesday, cautioning against hasty policy responses to the new…

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News Regulators 

Euro Zone August Business Growth Keeps Up Solid Pace

“The momentum was underpinned by strong manufacturing growth in both of the euro zone’s biggest economies, Germany and France, where manufacturing PMIs surged above even the most optimistic forecasts” writes Min Read for reuters.com. Hiring growth slowed slightly in services and manufacturing, but remained solid.The euro bounced off session lows after the Germany PMI data were released, half an hour before the euro zone data, but later gave up its gains in very thin trading.But services activity dipped to the weakest since the start of the year, along with a…

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News Regulators 

ECB chief Draghi gives nothing away on policy path ahead of Jackson Hole speech

“Speaking at a conference in Lindau, Germany, Draghi praised economists’ research and said that adjustments to monetary policy are “never easy.”” writes unknown author for cnbc.com. President Mario Draghi gave little indication about the next steps for monetary policy in the euro zone during a speech on Wednesday ahead of a key meeting between central bankers.However, he made no reference to how the bank might adjust its own policy to the improving economic data across the euro zone, a highly debated issue among market participants.A stronger euro acts as a…

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News Regulators 

EUR/USD: ‘Buy The Rumor, Sell The Fact’ Into Jackson Hole – ING

“Will Draghi hint about QE or talk down the euro?” writes Yohay’s Google Profile for forexcrunch.com. It is difficult to see President Draghi exceeding the intrinsic QE taper expectations priced into the euro, while he could choose to repeat the Governing Council’s concerns over currency markets front-running ECB policy normalisation. Source: forexcrunch.com Share This:

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Markets News Regulators 

Markets are in denial about upcoming Fed rate hikes

“Currently, the index is at -1.604, just barely above the record low: In other words, financial conditions have almost never been easier despite the current series of tightening moves” writes Wolf Richter for businessinsider.com. Louis Fed tracks these financial conditions with its “Financial Stress Index.” In this chart of the Financial Stress Index, the blue line (=zero) represents “normal financial market conditions.” Values below zero indicate below-average financial market stress.As a consequence, the yield curve has flattened further, which is the opposite of what the Fed wants to accomplish.And since the…

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News Regulators 

Fed officials keep breaking with protocol in a way that could compromise the central bank’s independence

“This represents a direct breach of central bank independence, which the Fed is loathe to concede when it comes to Congressional interference in its affairs” writes Pedro Nicolaci Da for businessinsider.com.au. Fischer’s remarks come on the heels of Dudley’s own curious endorsement of Cohn, a fellow former banker with whom he overlapped at Goldman Sachs.Like William Dudley, the president of the New York Fed and a former partner at Goldman Sachs, Fischer, himself a former banker at Citigroup, appeared to tacitly endorse Trump’s preferred candidate, the head of the National…

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News Regulators Reviews 

Policy Daily Review August 22, 2017

Policy Daily Review for August 22, 2017 BRAZIL: Minister Denies Rumors Regarding 2018 Minimum Wage Brazil’s Minister of Planning, Dyogo Oliveira, denied rumors on an alleged decision to reduce the next year’s minimum wage adjustment in the country. In a video released on social networks, Oliveira clarified that the value of the minimum wage in 2018 would be only known after the 2017’s official inflation rate release.   Have a nice trading! Share This:

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News Regulators 

Editorial: Why Is the Fed So Scared of Inflation?

“A more plausible view is that persistently low inflation shows the economy is more fragile than policy makers want to admit, and needs to be helped, not handicapped” writes The Editorial Board for nytimes.com. As Fed officials try to make sense of how low unemployment, which should drive up wages and prices, persists side by side with low inflation, most simply assume that inflation will rise by next year as labor demand lifts wages and higher wages lead to rising prices.The Fed has had to continually pull back its inflation…

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News Regulators Reviews 

Policy Daily Review August 21, 2017

Policy Daily Review for August 21, 2017 Global Monetary Policy Is Easing Again and Sentiment Will Suffer for It Just a month ago, it seemed that global monetary policy was following the path that the US Federal Reserve had blazed.   Bullish EUR/USD Outlook Clouded by Cautious FOMC & ECB Rhetoric EUR/USD may face choppy conditions ahead of the Fed Economic Symposium in Jackson Hole, Wyoming as market participants digest the fresh rhetoric from the FOMC   European Shares Retreat On US Policy Uncertainty European stocks tumbled on Friday after…

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