Trump, the Central Bank and the currency war
It might be a little early to talk of a "currency war", but the fact is that the Bank of England and the Federal Reserve in the last sessions of the major currencies released by the sudden change in the price. The euro appreciated foam (up ' against ' 1.08), (exchange rate is EUR 0.86) its biggest annual dollar this week, more than 1.3 billion.
All customs duties on imports and the boundary wall. It is now a currency war. Complete configuration file of United States foreign policy. In the election campaign should economic sanctions for those who take care of your money, the first objective was stressed: China, Japan and Germany with an artificially weak currency on the life of other costs. Accusing the neighbourhood policy of ' poverty ', in practice, in the case of Germany against each other with its European partners, for time and a serious crack the outlines of the project. Looking for the biggest political and business in Europe and around the world had ever seen, threatened a sympathy with the Atlantic, not only because he is a declared preference for weak and divided Europe, can also receive more conservative. How does it affect the climate problem and the great Germany as ratio of United States with strategic ally.
Immediately following and the dollar continues to plunge in three types of coin and the condition (bilaterally with United States and persistent current account surpluses and deal with the currency), it is not clear, in all three cases must be reported "currency manipulator". Rise against the dollar was the main reason at the beginning of the expansion of the tightening of monetary policy by the Federal Reserve to deal with next year's recovery more difficult, for a long time, the most important consequence is an extension of the extreme weakness of the dollar. See manipulation attempts, rates seem to trump the truth swung a big lie and disabled neighbors as the world of forms of being.
Every European country has its own currency, Germany would have a clear appreciation of each other, especially in times of crisis. Applies in Germany, given the fact that the trade surplus of euros in circulation are not more attention, but it is also true that the European Union ever in 2012 and 2013 in China, Japan and the United States ' war currency worked. We must not forget the European sovereign debt crisis and the strength of the euro as Germany, afraid, alone, problem solving, life companion in the run-up to the international capital markets may be a waste.
In China can only be considered once for its intervention in currency markets to keep the Yuan undervalued and thus a competitive advantage, but today's reality is different. 2016 was similar coins of its main trading partners of Asian giant is forced to spend more than $650 billion of the Central Bank to avoid additional writedowns.
By the Central Bank and mistrust of good economic data on both sides of the Atlantic for messages. The most obvious example is in the United States. 246 000 new jobs to the private sector in January this year, far beyond the above analysts ' forecasts of 165,000 jobs. In theory, the United States, increases the power of the market on interest rate expectations more aggressively, but much more cautious than expected messages select the Federal.
Donald Trump speaks for the first time in front of the White House, meeting, Yellen only gradually increasing the boys, gives an idea of the next step will be. Yes, in the absence of Government of the United States again, known under the name of tax measures fed to ensure that the U.S. economy continues to grow at a "moderate" reduced uncertainty in the global economy. At the moment the two increase the discount rate for the United States this year and two in the year 2018.
United Kingdom, a similar situation. Bank of Portugal (BoE) new planned for 2017 before GDP growth of 1.4% 2% increase is power and cooling at the same time, tightening monetary inflation is back. Finding members of BoE chose price controls and properties, in the last month of the waterfall to the victory of the record books. Delays were the first, market interest rates at the end of 2018, currently 0.25% increase in the United Kingdom.
The ECB is concerned, supported the purchases, while growth in the euro area, the German voice over low interest rates and inflation pressure on the work of monetary stimulus.
