Germany is the European Union’s economic powerhouse. The country has had 16 consecutive quarters of GDP growth—its longest upswing since 1991—and is enjoying its lowest unemployment rate since reunification in 1990. Germany’s solid growth has continued this year despite political challenges to Chancellor Angela Merkel’s leadership, with more jobs and higher wages driving consumer spending. […]
With U.S. growth revised upward due to government spending and tax cuts, markets have priced in three Fed rate hikes for 2018. That’s allowed the U.S. dollar to put up a fight against global currencies despite a deficit projected to surpass US$1 trillion in 2019. “Generous long-end spreads versus still-low overseas yields are providing enough […]
European Central Bank head Mario Draghi says the expanding eurozone economy still faces “risks and uncertainties”— including a looming trade dispute with the United States—and has cautioned that inflation needs to rise further before monetary stimulus is ended. Draghi said Wednesday that higher inflation, not growth, is the “very clear condition” for the central bank […]
The European Central Bank could indicate as soon as March that it is mulling an earlier end to its stimulus program
The European Commission says the recovery across the 19-country eurozone is set to remain fairly buoyant this year. In its latest forecast, the European Union’s executive arm said it expects 2018 growth to be 2.3%, just shy of the 2.4% rate it is predicting for 2017—preliminary figures last week from the EU’s statistics agency showed […]
The greatest global issue is cross-border capital flows.
The Federal Reserve’s firm statement last week that a December rate hike remains on the table wasn’t good news for the loonie, which had reached US$0.83 after two hikes by the Bank of Canada. Read: Why there’s too much love for the loonie Loss of loonie steam can also be attributed to remarks from the […]
Contrary to the Bank of Canada's goal, the loonie may appreciate in the near term
Loonie drops again in April, faced with U.S. trade policy and dovish central bank
Italian voters dealt Premier Matteo Renzi a resounding rebuke by rejecting his proposed constitutional reforms, plunging Europe’s fourth-largest economy into political and economic uncertainty Monday. Read: Is eurozone in for a rough near-term ride? Renzi announced he would quit following Sunday’s referendum vote, in which 60% of voters rejected his proposals and signalled they wanted […]