FED, ECB Decisions Behind Us; What Is Next?
Euro tumbled last week after ECB signals end of QE. The ECB keeps interest rates unchanged at 0%, as expected. Net asset purchases will be reduced to €15 billion from Oct until the end of December 2018 and that net purchases will then end. However, rates will be unchanged till Summer 2019. The EURUSD dropped sharply on dovish ECB.
The other significant event of last week was the FOMC Monetary Policy Meeting. The Federal Reserve raised interest rates by 25 basis points last Wednesday. Its second rate hike this year, and signaled two more hikes
in 2018. Also, Fed sees slightly higher 2018 GDP growth, lower unemployment in 2018-2020, higher inflation in 2018-19 versus the previous forecast.
Additionally, US announced tariffs on $50 billion worth of Chinese goods, spurring a promise of immediate and equivalent retaliation from Beijing.
Looking ahead, among this week's US data; Building Permits, Housing Starts, Manufacturing, and Services PMI, as well as Philadelphia Fed Manufacturing Index, will be closely followed by investor this week
There is also an annual European Central Bank (ECB) panel "Forum on Central Banking" in Portugal from Monday to Wednesday. We will watch the world biggest central banks governors this week.
18 Jun 18 (Mon)
06:09 am
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