Eco Chart
BNP Paribas | May 05, 2017 05:36AM ET
In the US, the “Trump” effect is fading as the new president finds difficulties to pass measures at the Congress The economy is doing well anyway, boosted by external demand and higher oil prices (pick-up in shale oil activities) This could have a rather inflationary impact since the economy is already close to its potential, and unemployment is very low. We expect inflation to edge up, rising above the official target of 2%, due not only to higher oil prices but also to wage pressures. In this case, the Fed would probably speed-up the process of raising key rates, and the bond market is likely to underperform.
The Euro area recovery appears to be self-sustaining and is resisting potential headwinds (Brexit, “Trump tantrum”). Intra-EU trade continues to build, signalling stronger domestic demand. The ECB’s “QE” and zero interest rate policy continues to revive credit and money supply growth. Inflation has rebounded in the wake of higher oil prices, but the core CPI trend remains very subdued, which argues for the ECB to maintain the status quo in 2017.
To read the entire report Please click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.