Tag: Core Inflation

Mario Draghi Must Act Now

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


The coming weeks could be pivotal ones for the Euro. This time, it isn’t because of a threat to its existence or a member state’s bankruptcy. No, this time, it will be because of the actions of Mario Draghi and the European Central Bank. The ECB chief has the power to ignite the momentum desperately needed to awaken the Eurozone from its economic stupor. Simply put, Mario Draghi must push the Euro below 1 Dollar.

The Eurozone Lately

When we examine the latest trends in the Eurozone, we do see some positive signs. Exports have recovered, and industrial production has increased, as well. On the consumer front, retail sales have also been accelerating nicely. On top of that, the Eurozone’s GDP growth rate has been inching up, albeit at a very moderate pace. Continue reading "Mario Draghi Must Act Now" →

Hedge Your Dollars With Pounds?

Posted on by Lior Alkalay

Lior Alkalay - INO.com Contributor - Forex


Which currency is set to outperform? Is it the US Dollar or the Pound Sterling? Consider if you will that, despite some notable headwinds, the Fed is moving closer to a rate hike. For many, that suggests the Dollar as the best bet for the next 12 months. Especially with unemployment at 5.3% and core CPI now rebounding to 1.8% Year on Year. Yet some US data releases are still only "mildly" positive; for example gains in wages, slowed from 2.3% to just 2%.

On the other side of the Atlantic the Bank of England has signaled that it's warming up towards a rate hike, too. Yet, unlike in the US, gains in wages have been rising by 3.2% Year on Year. Moreover, GDP has been growing at a pace of 0.4% (QoQ) in Q1, far better than the negative figure posted by the US. So is the Sterling looking better than the Dollar? Not exactly. Then is the Dollar looking better than Sterling? The answer is, once again, not exactly. But here's the thing. Continue reading "Hedge Your Dollars With Pounds?" →