Daily Update - 22nd November 2018
Dr Lowe said "people don't feel happy" nor confident in their future prospects despite unemployment levels in many major economies being lower than they have been in decades. The university professor at the center of fresh debate on the Bank of Japan’s monetary policy said scrapping negative interest rates now could support economic growth and prices. The surge of interest even prompted an appearance by Governor Haruhiko Kuroda in parliament, where he defended negative rates and insisted the BOJ would continue to keep short-term rates negative to help achieve Japan’s 2 percent inflation goal. Oil tumbled below $53 a barrel for the first time in a year amid concern OPEC’s plans to cut production won’t be enough to stem a surge in stockpiles. Futures fell more than 7 percent in New York and London. A government report Wednesday may show U.S. crude inventories rose for a ninth straight week, U.S. President Donald Trump said that Saudi Arabia has been "responsive" to oil price requests. The European Union took the first step on Wednesday toward fining Italy after ruling that the country's spending drive violates the bloc's fiscal rules. Brussels has rejected Rome's budget plan for 2019. “The Commission confirms the existence of a particularly serious case of non-compliance,” the EU said in its annual review of euro-area nations’ spending plans referring to Italy’s 2019 budget. “With what the Italian government has put on the table, we see a risk of the country sleepwalking into instability.” According to EU regulations, a member country’s public debt cannot be higher than 60 percent of its gross domestic product, or – if it is – has to be falling towards 60 percent at a satisfactory pace. Federal Reserve Chairman Jerome Powell and his colleagues are likely to turn warier about marching interest rates higher after delivering a quarter percentage-point increase that is widely anticipated in December. Ms May has faced questions over the status of her governing majority, with the Democratic Unionist Party, whose votes she relies on, refusing to support the prime minister unless she changes her Brexit plan. Focus of the day should be ECB monetary policy meeting account report as major market moving data but before that we have got some reports like National CPI ex fresh food and energy coming from JPY side so we can expect some volatility in JPY as well. Looking ahead, we have got some major market moving data coming from Canada to bring some volatility in CAD area. Reports are like retails sales report, CPI report, Bank of Canada CPI report along with some Eurozone data like Markit Manufacturing PMI, Markit PMI composite and Markit service PMI along with GDP.Yesterday’s Focus
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