Inflation

Last week’s highlights RBA surprises with more QE The Reserve Bank of Australia held its monetary policy meeting last week. In a surprise to the markets, the central ramped up its QE purchases. Following the announcement, the Australian…
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So, the price of gold has been going on a bit of a roller coaster lately. And to make the life of traders a little more interesting, its behavior has been a bit counterintuitive. One would expect that following a massive, politically…
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Inflation is likely to be a watchword of the central bank in the coming months. So it will be relevant to forex dynamics and stock markets. But there is still no firm consensus among economists about what will happen. For us traders,…
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Last week’s highlights RBNZ surprises with no rate cut The Reserve Bank of New Zealand surprised the markets with no rate cuts at its meeting last week. The central bank also ruled out any rate cuts until March next year, putting an…
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This week we have a series of important inflation data from major countries across the world. We're getting to a critical juncture in the economic recovery from COVID that implies more attention is needed on CPI changes. As mentioned…
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On Friday, Germany reported the highest number of new COVID cases since April 8th, which was near the middle of the "first wave". Last week, the number of new cases has increased dramatically, well over 50% in less than 7 days.…
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It's no surprise that politics has an impact on inflation expectations. But the political wrangling in Washington right now might have almost direct consequences in consumer prices. The economic debate raging now is if, and how much,…
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Classic economics indicates that if you expand the monetary base, inflation soon follows. Expanding the monetary base is the technical term for "printing money". The Fed does this in many ways, such as buying bonds. Another classic…
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Normally, following a period of economic uncertainty, like a recession, there is a period of deflation. Basically, demand drops, and competition forces prices down. Following a recession, central banks and the government implement a…
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After a few months of crisis mode, central banks are returning their focus to fundamentals for policy decisions. We ought to expect data like inflation to have a larger impact on the markets as governments hold off on new measures to…
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