The S&P Ratings has recently announced that it affirmed Germany’s sovereign rating at AAA/A-1 and maintained its outlook at stable. Key quotes (via Reuters) Stable outlook on Germany reflects expectation of ongoing overall consensus on prudent fiscal and economic policies. Expects Germany to preserve strong budgetary and external positions during 2018-2021 amid solid, albeit moderating
In Europe, the focus remains on the ongoing Italian budget fight, while markets will also keep an eye on the euro area October HICP figures after recent months’ core inflation misses, point out analysts at Danske Bank.  Key Quotes:  “On Tuesday, we will get euro area preliminary Q3 GDP numbers. Quarterly growth rates slowed down
The S&P Ratings has recently announced that it maintained Italy’s sovereign rating at BBB and lowered its outlook to negative from stable. Key quotes (via Reuters) Outlook on Italy revised to negative on risks to economic growth following budget plan. Negative outlook reflects risk that Italian government’s decision to further increase public borrowing will stifle
Underside of broken trend line tested at 112.09. Can it stall the rally here? The USDJPY fell below its 100 day MA and tested a swing target at 111.39. That is where the selling stalled.  Getting back above the 100 day MA (see 5- minute chart) turned the tide back to the upside.   The rally
And down for the week as well The major European indices are ending the week on a down note with declines across the board: German DAX, -1.0% France’s CAC, -1.3% UK’s FTSE,–0.9%  Spain’s Ibex,-1.0% Italy’s FTSE MIB, -0.7% logical PSI 20-1.27% For the week the major indices were also lower: German DAX, -3.06% France’s CAC,
Below are some of the key results from the European Central Bank’s (ECB) survey of professional forecasters, published this Friday. Growth forecasts:   •  2018 growth seen at 2.0%; down from 2.2%.   •  2019 growth seen at 1.8%; down from 1.9%.   •  2020 growth seen at 1.6%; unchanged. Inflation outlook:   •  Euro-zone HICP inflation expectations unchanged
Japanese Yen Talking Points USD/JPY bounces back from a fresh weekly-low (111.82), with benchmark equity indices reflecting a similar dynamic, but the exchange rate may continue to threaten the upward trend from earlier this year as it extends the series of lower highs from earlier this week. USD/JPY Bull Trend Vulnerable to Swing in Risk
TALKING POINTS – EURO, ECB, ITALY, DRAGHI ECB interest rate decision in focus, no core policy changes expected Slowing growth, Italian turmoil may cast doubt on tightening outlook Euro may fall as Draghi presser hints at dovish guidance adjustment All eyes are on the ECB rate decision in European trading hours. A change is policy
Analysts at Danske Bank point out that in the euro area, we have the ECB Governing Council meeting, which they expect to be a meeting with little action. Key Quotes “Since the last meeting, incoming data has not warranted a change in policies, not least the wording on ending its asset purchase program (APP). Therefore,
Speaking in NY.  She seems happy. She adds: fundamentals of the US economy is strong Tariffs pose a potential risk to the economy there are no signs of a pending US recession a prolonged market downturn, build up in risks would affect US economic data not adjusting policy stance based on recent market drop inflation