Markets News Regulators 

BOJ and ECB expectations have trader hopes riding high for the yen and the euro

“If expectations have moved too much too fast, the euro could drop to $1.21, according to the BNP analysts” writes Anneken Tappe for marketwatch.com. Much of the thesis surrounding a strong euro and a strengthening Japanese yen in 2018 is built around central banks and expectations for monetary-policy normalization across the globe.A hawkish ECB might provide a further fillip to the euro EURUSD, -0.0409%  in 2018.Still, “we would highlight that the yen remains very cheap from a long-term valuation perspective and [currency] markets continue to price in BOJ policy remaining…

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Trump hasn’t made the dollar great again, and he apparently likes it that way

“Days before he was inaugurated, then-President-elect Donald Trump shocked the currency world by saying the dollar was too strong” writes Mohamed Abd El for cnbc.com. Chandler and strategists at Bank of America Merrill Lynch say they expect the dollar to start strengthening.What he does expect to see is a migration toward the dollar again because of interest rate differentials.One caveat would be if Trump were to pursue protectionist strategies or start a trade war, which would send the dollar lower against the euro and yen.”We see a lot of upside…

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Germany fiercely defends its trade surplus, says it would be ‘futile’ to spend more

“Jens Weidmann, president of the German central bank, all but ruled out an increase in public spending during a speech” writes Alex Kraus for cnbc.com. Germany again defended its economic surplus on Thursday, despite increased criticism from the International Monetary Fund (IMF) and Europe.Germany has been often criticized for not using its budget leeway to make further investments, which ultimately could help out other embattled euro economies. Source: cnbc.com Share This:

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Megadeals in the euro zone hit their highest value since the financial crisis, study shows

“Brexit is unlikely to have played a material role in intra-euro zone mergers and acquisitions,” Geyrhalter also said in the study” writes Michaela Rehle for cnbc.com. Throughout last year, more than 4,000 deals targeted the euro zone and were worth a total of 476.7 billion euros ($584.48 billion), the data showed. The European Central Bank estimated in a report in December that euro zone GDP (gross domestic product) rose by 2.4 percent during 2017.The growth momentum in the euro zone helped the region log its highest annual value of mergers…

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Dollar selloff pauses, rebounds from 3-year low

“The headline reading came in at 3%, down from 3.1% as expected, while core inflation fell to 2.5% from 2.7%” writes Markets Reporter for marketwatch.com. The buck has in recent days traded around the lowest euro level since December 2014 as traders shift their attention from the Federal Reserve to the European Central Bank.The dollar broke a four-session losing run on Tuesday, rebounding as U.S. traders returned from the Martin Luther King holiday.The dollar strength came after a string of losses for the greenback, with analysts ascribing Tuesday’s gains to…

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News Stocks 

Euro Gains Hold Stocks in Check, Wall Street Poised For New Record Highs

“The broadest measure of regional stocks, the MSCI Asia ex-Japan index, was marked 0.53% higher into the close of trading” writes Martin Baccardax for thestreet.com. European stocks are expected to open modestly higher Tuesday, with Wall Street set to print new record highs on its return from holiday as investors extend bets on a strong corporate earnings season and price-in the impact of a weakened U.S. dollar and recent tax reform on international sales .Overnight in Asia, stocks pushed higher into record territory after breaching their all-time peak Monday thanks…

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News Stocks 

European stocks lose ground as euro drives further into 3-year highs

“On Friday, the index rose 0.3% and that move allowed it to end last week higher by 0.3%” writes Markets Reporter for marketwatch.com. European stocks pulled lower Monday, weighed as the euro continued to march up further into 3-year highs, putting the regional benchmark at risk to fall for the third session in four.A stronger euro can make products produced by European exporters more expensive for their overseas customers to purchase.The Stoxx Europe 600 index SXXP, -0.15% fell 0.2% to 397.86, led by tech and health care shares. Source: marketwatch.com Share…

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Euro hits 3-year high on breakthrough for German coalition talks

“December core inflation rose 0.3%, compared with MarketWatch consensus forecast of 0.2%, while headline numbers were in line with estimates at 0.1%” writes Markets Reporter for marketwatch.com. The U.S. dollar meanwhile held the losses it incurred on the back of euro strength, even as data showed that core inflation rose slightly more-than-expected in December.On the year, inflation rose 1.8%, up modestly from 1.7% before. Source: marketwatch.com Share This:

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The euro is surging and experts believe it’s only going to stay that way

“The single currency is expected to strengthen over the foreseeable future as the European Central Bank (ECB) slows down its monetary stimulus, analysts told CNBC. “We see more gains for the EUR ahead as the ECB paves the way for ending outright quantitative easing (QE) purchases later this year,” Stephen Gallo, head of forex strategy at the Bank of Montreal, told CNBC via email” writes Emmanuel Dunnand for cnbc.com. The euro jumped nearly 0.8 percent against the U.S. dollar on Thursday following the release of minutes from the last meeting…

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News Stocks 

European stocks edge up with Fiat gaining, but euro jumps on German progress

“The Stoxx Europe 600 index SXXP, +0.19% rose 0.1% to 397.64” writes Markets Reporter for marketwatch.com. European stocks edged higher Friday, with Fiat Chrysler Automobiles NV and industrial names advancing, but gains were held in check by a surging euro on the back of a breakthrough in German government-coalition talks.The coalition news sent the euro surging above $1.21 against the dollar for the first time since January 2015.Germany’s DAX 30 index DAX, +0.26%  was up 0.1% at 13,215.12, and France’s CAC 40 PX1, +0.34%  picked up 0.1% at 5,493.95. Source: marketwatch.com…

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