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Euro zone inflation confirmed above ECB target in July

“Annual inflation in the 19 countries sharing the euro increased to 2.1 percent in July, European statistics office Eurostat said on Friday, confirming the rate was above the European Central Bank’s (ECB) target” reports cnbc.com. The confirmation of increasing inflation is good news for the ECB, which aims to end a bond purchasing programme by the end of the year and has signalled a possible interest rate hike next year. (Full Story) Headline consumer inflation accelerated to 2.1 percent year-on-year in July from 2.0 percent in June, pushed up by…

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U.S. bonds rally and global stocks tumble as ECB raises questions about Turkey contagion

“Inflation is a key data point for fixed-income investors because rising inflation can erode the fixed value of debt instruments” writes Mark Decambre for marketwatch.com. Also, rising inflation can cause the Federal Reserve to act more promptly in trying to normalize interest-rate policy to combat out-of-control rising prices and inflation.The 30-year bond yield TMUBMUSD30Y, -1.20%  shed 3.3 basis points to 3.048%, after its sharpest yield decline in a day since June 27.The two-year note yield TMUBMUSD02Y, -0.62% gave up 1.7 basis points to 2.633%, following its biggest daily yield drop…

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Lira plunges vs. dollar as ECB worries about banks exposure to Turkey: report

“The Turkish lira plunged to a fresh record low against the U.S. dollar Friday, following a report the European Central Bank is growing more concerned about exposure of regional banks to Turkey” writes Markets Reporter for marketwatch.com. The euro fell against the dollar Friday as the shared currency EURUSD, -0.5987% traded 0.5% lower at $1.1467.”The euro is lower this morning as Turkey’s problems seem to be spreading to Europe,” said Konstantinos Anthis, head of research at ADSS, in a note.”From a technical perspective, the euro could go all the way…

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ECB worries that some European banks may be too exposed to Turkey: FT

“The European Central Bank is getting increasingly concerned about the exposure of exposure of some banks in the region — specifically from Spain, Italy and France — to the woes of Turkey, the Financial Times reported Friday, citing two sources close to the situation” writes Markets Reporter for marketwatch.com. Spain’s BBVA SA BBVA, -0.92% BBVA, -1.87% Italy’s Unicredit SpA UCG, -1.90% and France’s BNP Paribas SA BNP, -0.40% among the biggest lenders to the country, have come under closer scrutiny by the Single Supervisory Mechanism, the ECB’s arm charged with…

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ECB sees scope for further consumption boom

“Private consumption has been the main driver of the recent economic expansion, but there is still scope for further growth,” the ECB said” writes Krisztian Bocsi for cnbc.com. Private consumption in the euro zone has further room to grow, likely driving economic expansion even as external headwinds multiply, the European Central Bank said in an economic bulletin on Wednesday. Source: cnbc.com Share This:

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ECB’s Lautenschlaeger says worried about banking deregulation: Welt am Sonntag

“We need to ensure that the pendulum doesn’t swing back to that,” said Lautenschlaeger, who is also deputy head of the ECB banking supervisor” reports businessinsider.com. “After the financial crisis supervisors were strengthened and given instruments to proactively react to looming risks. Source: businessinsider.com Share This:

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Dollar stands tall, euro on defensive after ECB offers few surprises

“The dollar index, which measures the greenback’s strength against a basket of six major currencies, stood little changed at 94.743” writes unknown author for cnbc.com. While the euro’s downturn provided the dollar with a significant lift, the U.S. currency was seen to be enjoying support from other quarters as well.The dollar was firm against its peers on Friday, having regained traction as the euro slid sharply after the European Central Bank kept to its planned timetable to move away from its accommodative monetary policy.The euro was virtually flat at $1.1643. Source:…

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Euro, dollar slip ahead of ECB press conference, U.S. economic data

“The euro moved lower against other major currencies on Thursday, with traders staying on the sidelines ahead of the European Central Bank’s policy update that could drive euro trading for the day” writes Markets Reporter for marketwatch.com. ECB President Mario Draghi is not expected to depart from the normalization part laid out in the June meeting, yet any new form of guidance, including on economic data for the second half of the year, will be watched closely.Don’t miss: It’s this number from abroad — and not the ECB update —…

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Treasury rates climb ahead of ECB policy update, and as trade tensions cool

“U.S. government bond rates early Thursday advanced as fixed-income investors awaited the latest policy update from the European Central Bank, which could affect Treasurys” writes Mark Decambre for marketwatch.com. Bond investors also awaited a string of economic reports, including on the labor market and international trade.Meanwhile, bond investors also will look to a $30 billion auction in seven-year notes slated for 1 p.m., a day after an auction of 5-year paper worth $36 billion.Analysts pointed to solid appetite shown in the Wednesday auction as a sign that long-term investors were…

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EUR/USD technical positioning ahead of ECB tomorrow

“It’s the upper, descending trend line that price has most recently rejected off and it seems that we’re going to probably head into the ECB tomorrow all coiled up” reports forexlive.com. In terms of a higher time frame look, you would say that price is sitting at resistance.With potential data spikes out of the way, price has a clear run into the ECB tomorrow and the question becomes, can you see price being bullish enough tomorrow, that it’s going to want to push through in anticipation of that fact, tonight. Source:…

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