Currency Markets Stable But More Downside Expected

By | November 19, 2014

Apart from the latest figures from the residential construction for the month of October, “the day will remain poor ad, except the minutes of the Bank of England and the Fed,” commented analysts. Due to the increasing divergence of the policies of central banks on both sides of the North Atlantic, this account of the last Monetary Policy Committee of the Fed will indeed be closely monitored.

‘Each of the nuances of the statement will be passed to scrutiny. But the central question remains this: the Fed Does a vote raising its rates during the recovery phase of the US economy, or will it wait until inflation is back ‘? wonder traders Societe Generale.

In addition, many investors are wondering if the European economy in general and Germany in particular, would not have reached its low point.

And while the policy of the ECB still seems doomed to soften. The intervention of Mario Draghi on Monday, has also helped to re-light the scenario of a possible intervention by the ECB to the European sovereign debt (bond purchases “state in most of the private debt securities).

If in macroeconomics, there is no evidence that a policy of buying assets to be truly effective for the real economy, however, in flux, simply to evoke may be sufficient to redirect the money to European markets.

Moreover, the combination of disappointing statistics, political instability and political masssive asset purchase all kinds of the Bank of Japan continue to weigh on the yen, the euro face which takes 0.62% to 147 46. The euro has reached its annual peak against the currency this morning.

Faced with sterling, the single European currency lost 0.31% in contrast to 0.7997, however, it was learned that the Bank of England (BoE) shows split on monetary policy to drive, given the ‘minutes’ (report) of its last meeting on November 5 and 6 last: nine members, only seven voted in favor of maintaining the principal to its lowest rate of 0.50%, while two would have preferred an increase of 25 basis points.