News and Reviews European Economic Zone

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News and Review of European Economic Zone (France)

 

French Consumer Spending Down in April

Wednesday, May 28, 2014

 

Motor of the French economy started the second quarter with a slow , rate reported French consumer spending fell in April .

 

Insee reported consumer spending in the second largest economy in the euro zone fell 0.3 % in April from the previous month when it rose 0.6 % . The figure at the same time an increase of 0.5 % memtahkan expectations of economists . Meanwhile, if compared with the previous year consumer spending dropped 0.5 % , with an estimated increase of 0.1 % .

 

Shopping textile products , clothing , and leather goods fell 1.5 % , and has dropped in three consecutive months . Unusual warm weather that hit Europe also make expenditures for gas and electricity fell 3.3 % in March after rising 2.8 % .

 

The decline is a challenge for President Francois Hollande attempted to revive the French economy by reducing business taxes and the minimum wage . The French economy grew in the first quarter and 0 % or stagnant .

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News and Review of European Economic Zone

 

Euro Rebounds From Lowest Level 3 ½ Months

Thursday, May 29, 2014

 

The euro traded higher against the dollar , rebounding from the lowest level in 3 ½ months . Previous Euro continues to decline due to expectations of further monetary easing by the European Central Bank , which is likely to be conducted on the monetary policy meeting next week . ECB executive board member , Yves Mersch , on Wednesday said policy makers " comfortable " to take steps both conventional and un - conventional . While the ECB governing council member Carlos Costa is scheduled to speak tomorrow .

 

While the dollar under pressure due to a decrease in the 10-year Treasury yields ahead of the release of U.S. gross domestic product data estimates both tonight . Yields on 10-year U.S. Treasury to 2.44 % , the lowest level in the past 10 months . Federal Reserve Chairman earlier this month said perekonmian As still need support , thus reducing the expectations will rise in U.S. interest rates . U.S. gross domestic product in the first quarter second estimate is expected to fall -0.6 % from the first estimate of 0.1 % .

 

EURUSD is currently trading at around 1.3617 , having gained 0.16 % , with daily lows and highs 1.3585 1.3623 .

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News and Review of European Economic Zone (UK)

 

BOE Weale Proposes Initial Interest Rate Increase

Thursday, May 29, 2014

 

England should start raising interest rates more quickly if it wants to avoid a sharp and painful rise in the coming days , according to one of the memorial committee member of the Bank of England . In an interview with the Financial Times , Martin Weale , an external member of the BoE's Monetary Policy Committee , said mernurutnya despite rise in interest rates " gradually " but may result in a yield increase to 1 % a year , faster than market expectations .

 

Weale said the definition of the rate hike is " gradually " will involve the increase in " no more than " 25 basis points in the quarter , while the investor believes the increase of about 1.8 % within 3 years . The central bank has repeatedly mengatkaan interest rate increases will take " gradual and limited " when the economy becomes strong enough . However Weale warned that if the MPC wants the rate of increase gradually , then they should not wait too long to start .

 

" If you want to do a small step , we must begin to do it early , " he said in an interview with the Financial Times . " The question is : how close are we to " close " the ? Surely there is no certainty , however, the economy has maintained a growth rate that is fast enough demand . " " So the answer to my question is not necessarily more than 5 months ago , ' Where is the interest rate should be at this time ? " Economists believe that the BoE , which has maintained interest rates at a record low of 0.5 % since 2009 , to become the first major central bank which raised interest rates since the European Central Bank to tighten monetary policy in the summer of 2011.

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News and Review of European Economic Zone (Spain)

 

Spanish Lower Estimates First Quarter Growth

Thursday, May 29, 2014

 

Trend of economic growth in the countries affected by the crisis have not been completely normal. This fact is evident from the steps taken by the Spanish state statistics office today.

 

National statistics office INE cut its estimate of economic growth (YoY) in the first quarter from 0.5% to 0.6%. As for the comparison with the fourth quarter 2013 GDP, the first quarter GDP estimate was maintained at 0.4% rate.

 

However, estimates 0.5% GDP remains a significant advancement, especially when compared with quarterly growth in the final quarter of 2013 were only 0.2%. INE said that the high volume of demand for products and services in the country, particularly from the household sector and government spending, successfully offset sluggishness overseas markets and a rise in imports.

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News and Review of European Economic Zone (Germany)

 

German Retail Sales Exceed Estimates Dropped

Friday, May 30, 2014

 

German retail sales figures for the period April 2014 released today fell sharply. The decline had been predicted earlier, but the pace is not as severe as the facts on the ground.

 

Figures retail sales fell 0.9% compared to the previous month, or minus more than twice that of the analyst forecast -0.4%. While compared with the same month in 2013, retail sales grew 3.4%. From the positive side, some sectors recorded an increase in mean expenditures. Consumption of Germans for food products and beverages rose 7.9% compared to the year 2013. As for shopping for household appliances dropped 2.7%.

 

The results of the data is in line with the trend of retail sales in the Euro zone. Growth in retail sales figures alone only reaches Euro 0.3% in March and 0.9% when compared with the same month the previous year.

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News and Review of European Economic Zone (Spain)

 

Inflation Slows , Spain staked Deflation

Friday, May 30, 2014

 

Spain 's inflation rate declined slightly in May , largely due to the price of food and drinks that are lower, according to official data released on Friday .

 

Spanish statistics office report , INE , showed the consumer price index calculated by the method of the European Union grew 0.2 % in May. The figure is lower than the 0.3% rise in April inscribed . If calculated by the method of Spain itself , the price is also just recorded an increase of 0.2 % after growing 0.4 % in the previous month .

 

In recent months , the Spanish policy makers have voiced concern over deflation risks that lurk 4th largest economy euro zone . Although the Spanish economy has been able to come out of recession period 9 consecutive quarter in the 2nd half of last year , the unemployment rate continues to hold at high levels . Which together with the weakening demand for household goods and business has put consumer prices under pressure .

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News and Review of European Economic Zone (UK)

 

Consumer Sentiment Improves , UK House Prices Soar

Friday, May 30, 2014

 

UK house prices rose for the 16th consecutive month and consumer confidence jumped to a high level in the nine years following the improving economic outlook . Hometrack Ltd. . said house prices in England and Wales rose by 0.5 % in May following a 0.6 % increase in April . In a separate report GfK NOP Ltd. . said its index of consumer sentiment melinjak as much as 3 points to 0 this month , the first time scored positive results since April 2005 .

 

A stronger economic recovery in the UK has helped boost the level of market demand for the property , pose a problem for the Bank of England officials as rising prices suppress the people's purchasing power . The Bank of England has tightened mortgage requirements and BOE Financial Policy Council will assess the risk posed by the property sector at the next meeting next month . " The price increase is sharp , spreading issues regarding housing bubble , and the recent warning from the Bank of England to house price inflation started to test the buyers , " Richard Donnell , director of research at Hometrack .

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News and Review of European Economic Zone

 

Euro Bearish Bias Until the ECB Meeting

Monday, June 2, 2014

 

The euro weakened against most major currencies after the euro in May fell the most in four months against the dollar , and also before the release of data on the prediction that tomorrow will incorporate a mix of slow inflation and unemployment near record highs may force the central bank to act .

 

Analysts expect the European Central Bank will be the first among other central banks to push interest rates into negative territory when they set kebijakannnya on June 5 .

 

" The bias is bearish akana euro ahead of ECB meeting this week , and it should support the dollar , " said Toshiya Yamauchi , a senior analyst at Ueda Harlow Ltd. . , " It seems that the euro will be pushed back down by the European inflation data . "

 

The single currency traded at around $ 1.3621 at 8:13 pm from $ 1.3635 on May 30 , when the euro ended bulanannnya weakening by 1.7 % . The euro was little changed at 138.73 after falling by 2.1 % in May.

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News and Review of European Economic Zone (Portugal)

 

Portugal Bond Auction Scheduled Underway Next Week

Monday, June 2, 2014

 

Agency debt securities issuer Portugal bond auction expected to release details to June 11 on Friday this week ( 06 / 06 ) . German investment bank , Commerzbank , predicts the country will take off debt with a tenor of 10 years , and it is also possible 5 -year bond futures . Looking forward to the achievement of the target market funds and the type of bonds that will be issued by the center is government .

 

The auction process is scheduled to take place on Wednesday, the second or the fourth month or the date of June 11 and 25 . If the auction mechanism is not announced until the day Friday , the government lost the opportunity to raise fresh funds in this month .

 

Portugal has officially come out of the international bailout program and regain lost economic freedom after hit by the European debt crisis . Nevertheless , the country still faces challenges in the form of swelling debt burden by 214 billion euros ( $ 293 billion ) or the third highest debt in the euro zone by calculating the percentage of the gross domestic product . Portugal 's economy contracted by 4 % compared to 2010 , a year before the Portuguese government requested assistance from international lenders . After the crisis hit , 10 - year bond yield rocketed Portugal almost doubled compared to the performance of French bond yields . The three largest rating agencies world even consider Portugal as the country with the status of ' non - investment ' . Market participants should look at the interest of investors to the assets of Portuguese debt in the upcoming auction . When buying interest to meet the target , it can be concluded that the owner of the trust capital to the country recovers expansion .

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News and Review of European Economic Zone (UK)

 

House Prices In UK Back breaks record highs

Tuesday, June 3, 2014

 

UK house prices rose to record highs in the last month and indications of slowing in the market lately proved short -lived , according to Nationwide Building Society .

 

House prices rose by 0.7 % from April to average to 186.512 pounds ( $ 312,000 ) , the agency said today . It was above the level of the peak at 186.044 pounds achieved in October 2007 , a month after the collapse of Northern Rock . Price dropped around 15 % over the 12 months following that period .

 

UK economic recovery gained has helped boost property demand , creating problems for the Bank of England policy makers as soaring house prices have raised concerns that it may increase the possibility of bubbles . At a time when banks have tightened lending criteria for mortgages , Nationwide said that low interest rates and a decline in the unemployment rate may be a supportive demand .

 

Some data suggests the housing market may be slowing , with figures released by the BOE yesterday showing the number of mortgage approvals fell to the lowest level in nine months . It was the third monthly decline in a row after they reached the highest level in six months in January.

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News and Review of European Economic Zone (UK)

 

UK Construction Activity Slows In April

Tuesday, June 3, 2014

 

Growth in housing construction in the UK unexpectedly slowed to its lowest level in seven months in May as commercial and housing development which is managed jointly begin to contract .

 

Purchasing managers' index fell to 60 from 60.8 in April , in the report by Markit Economics said today in London . The median estimate of 17 economists in a Bloomberg survey called for a level of 61.0 . At the current rate of ekspasinya down , the index remains above the 50 level that indicates growth continues for more than a year ahead .

 

" UK construction activity has shown signs of a moderate decline of sharp growth seen earlier this year , said David Noble , chief executive officer at the Chartered Institute of Purchasing & Supply . " Strong expansion in new business and improving economic conditions and reflects the optimistic outlook for business in the future . "

 

Today's data , along with reports yesterday that show the decline in the number of mortgage approvals for the third consecutive month in April , showed a decrease in momentum in the real estate sector in the country . The market has soared in the past year , sending housing prices to record highs in London and raised concerns over the possible bubbles rise .

 

Housing activity index slipped to 62.7 from 63.9 , on show in the data from Markit , while commercial buildings to expand at slowest pace for seven months

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News and Review of European Economic Zone

 

Eurozone Inflation Slows in May

Tuesday, June 3, 2014

 

Euro zone inflation rate grew at an annual pace of 0.5% in May, slower than the 0.7% recorded in the previous month. The figure also broke the 0.7% rise expected by economists. That puts more pressure on the European Central Bank to ease monetary policy in a meeting on Thursday.

 

Initial reports indicate a slowdown in the rate of inflation Eurostat largely due to the energy sector and industrial goods, where prices tend to move flat compared with last year. While the price of food, alcohol and tobacco in May increased by less than in April.

 

While other data released by Eurostat on Tuesday showed the unemployment rate in the 18-nation bloc fell to 11.7% in April from 11.8% in March.

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News and Review of European Economic Zone

 

Draghi Ready to Maintain Interest Rate Options Advanced Pruning

Wednesday, June 4, 2014

 

Mario Draghi is likely to cut interest rates sinyalkan that will happen this week is not necessarily going to end, according to two officials of the European Central Bank.

 

President of the European Central Bank may be reaffirmed its commitment to keep borrowing costs at current levels or lower levels, said the speaker, who asked not to be published because the talks have not been published. At the time the final decision was not made until tomorrow, policymakers have debated for cuts of 10 to 15 basis points in interest rates and deposit rates, the speaker said.

 

The ECB is struggling to fight a prolonged inflation of low inflation that has been threatening the recovery in the euro zone emerging. Policy makers have given the possibility for a stimulus package that may also include a shot of liquidation by increasing the supply of credit to firms.

 

A program is modeled by the Bank of England's Funding for lending scheme is one of the options discussed by the officials. The proposal can terliahat when the ECB offers financing equivalent to 5% of their loan portfolio, said one of the speakers.

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News and Review of European Economic Zone (France)

 

France Threatens Trade Deal U.S. - Europe

Wednesday, June 4, 2014

 

France warned of the potential for trade agreements US-EU fines if the U.S. $ 10 billion to BNP Paribas, France's largest bank. "This is a big problem," said French Foreign Minister Laurent Fabius refers to the sanction against the BNP for violating the ban on transactions with Iran, Sudan, and Cuba. "We are conducting discussions transatlantic cooperation. Unilateral sanctions is absurd."

 

France is one of the supporters of that financial services be included in US-European trade deal that could be the greatest of all time agreements. Brussels and Washington have dismissed the threat against the deal, but there are analysts who have a different view. "Comments Fabius significant because the French participation in the realization of trade agreements," said Garrett Workman, officials Atlantic Council.

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News and Review of European Economic Zone (Germany)

 

Germany Wants Scroll Position IMF boss to the European Commission

Wednesday, June 4, 2014

 

German Chancellor, Angela Merkel, Christine Lagarde reportedly asked to be the next President of the European Commission. Lagarde, who now serves as head of the International Monetary Fund (IMF), is considered as the right person to assume new responsibilities in the post European governments.

 

In a private conversation with the President of France, Francois Hollande, Angela Merkel colleagues asking if it pleases release boss Christine Lagarde to become the new European Commission. President Hollande himself said he was not in a position to take a decision about it, but he thinks it would be better if Europe does not lose his representative at the IMF.

 

The news about Merkel request was immediately denied by the German government spokesman, Steffen Seibert. Told Reuters, Seibert asserts his country remains focused support Jean-Claude Juncker in the European parliamentary elections. Germany did not discuss the division of powers in the European official bodies and institutions of international creditors with any party.

 

Lagarde discourse shift from his position as head of the IMF broke in the middle of the desire of developing countries so that the head of the agency was not solely held by the Europeans and the United States. As the head of the most influential countries in the continent of blue, Angela Merkel rated begin listening to the aspirations of the cooperation partners from developing countries. Germany tried to create a sense of democratic because it does not want economic ties with new powers such as China and Brazil become damaged. By shifting Christine Lagarde to the European Commission, it is an open space for the IMF to seek a new leader nationals of non-European and the United States.

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News and Review of European Economic Zone (UK)

 

UK Services Sector Growth Rate Still Fast

Wednesday, June 4, 2014

 

English is the dominant services sector expanded faster than expected in May and the level of employment reached 17-year highs, according to a survey released on Wednesday, which may mempersengit debate about when the Bank of England will raise interest rates. Service sector PMI from Markit / CIPS turu be 58.6 in May from 58.7 in April, which is the highest result so far in 2014. Economists expect the PMI to be at 58.2 in May, still well above the 50 level that indicates growth. The UK economy scored the fastest annual growth rate of more than 6 years in the first quarter and is expected to grow about 3% in 2014, beating and other major industrial countries.

 

Chief economist Chris Williamson at Markit said that the economy is expected to grow by 0.8% return in the second quarter, pushing the economy to the size before the financial crisis in 2008. "With each PMI showed positive results, discussion among the members of the Bank of England's policy board of higher interest rates will be fierce, "said Williamson. There is a signal increase in the rate of wage growth in the services sector PMI, which triggered the sharpest rise in operating costs within 4 months. However, overall inflation appears under control. "Chances are the Bank of England will continue to step on the gas pedal to help the economy peaked," said Williamson.

 

BOE will hold a policy meeting on Wednesday and Thursday. The market expected an increase in interest rates the first time in 2015, but some economists see increased chances of an increase at the end of 2014.

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News and Review of European Economic Zone

 

Eurozone Retail Sales Rise For 4th Month streak

Thursday, June 5, 2014

 

Retail sales in the 18 countries that use the euro currency recorded a rise for 4th straight month in April, and recorded the fastest annual growth since early 2007, according to European Union statistics agency reported Thursday.

 

Eurostat reported sales volume increased by 0.4% from March and 2.4% higher than the level in April 2013.

 

This data was released as the Board of Governors of the European Central Bank policy meeting held in Frankfurt, which is widely expected to produce a series of new stimulus measures aimed to boost growth and inflation rates.

 

The increase in retail sales may give an indication of the ECB policy makers about the continued rise in consumer spending, which in turn will be able to push prices higher and closer to the annual inflation target of 2.0%.

 

But the unemployment rate remained not far from a record high, and slow wage growth, accelerating inflation rate will probably take a long time. Eurostat data released on Wednesday showed consumer spending grew only 0.1% in the first quarter. The weakening in household spending has been a major contributor to prolonged memburukanya Eurozone economic performance since the 2008 financial crisis

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News and Review of European Economic Zone (UK)

 

BoE Maintaining Policy

Thursday, June 5, 2014

 

The Bank of England on Thursday decided to keep its benchmark interest rate unchanged in order to support the UK's economic recovery is underway, following the growth in house prices recorded the fastest pace in almost 12 years in May.

 

After serving for 2 day meeting, the Monetary Policy Committee agreed to maintain the benchmark interest rate at a record low of 0.5% and total QE at £ 375 billion. The decision had been expected by the market, so it does not trigger significant movement in the Sterling and gilts.

 

The UK economy continues to show growth in the last 9 months after a long period of stagnation. International Monetary Fund estimates that even the British economy will grow 2.9% in 2014, which would be the fastest growth rate among the G7 countries.

 

While the BoE Governor Mark Carney has previously indicated it would keep interest rates low in an effort to spur spending and investment, as well as open up more jobs for inflationary pressures remain stable. British annual inflation recorded a growth of 1.8% in April, and is expected by the central bank will still entrenched around the target of 2% for the next few years.

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News and Review of European Economic Zone

 

To Encourage Inflation, ECB Cuts Interest Rate

Thursday, June 5, 2014

 

As expected by the markets, the European Central Bank on Thursday decided to cut interest rates in order to boost lending and spur inflation in the Euro zone.

 

Board of Governors of the ECB agreed to lower the lending rate to 0.15% from 0.25% previously. The central bank also cut the deposit facility rate to minus 0.1% from the previous 0%, which would make every bank must pay to park their excess liquidity at the ECB. Interest rates on the marginal lending facility was also cut to 0.4% from 0.75%.

 

Market participants are still waiting for a press conference ECB President Mario Draghi will begin at 20:30 pm, which is expected to provide clarity about additional stimulus measures from the central bank. After announcing the rate decision, the ECB also said that further measures to "improve the functioning of monetary policy transmission mechanism" will be explained in detail in a statement to be issued later.

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News and Review of European Economic Zone (Germany)

 

German Industrial Production Up In April

Friday, June 6th, 2014

 

The number of German industrial production rose in April in a sign that the country with the largest economy in Europe preparing to resume a solid growth rate.

 

Total production, which are customized with seasonal changes, rose 0.2% from March, when it fell a revised 0.6% in the, in the report by the Federal Statistics Office in Wiesbaden today. Economists had predicted to rise 0.4%, according to the results of 34 analysts in a Bloomberg survey. Total production rose by 1.8% in April from a year earlier when adjusted for working days.

 

Bundesbank has said that growth will "feel" slowed down after expansion faster than economists forecast in the first quarter even as the number of factory orders rebounded in April. At the moment Germany is still a powerhouse for Europe, low inflation and a weak recovery in the 18 country euro zone, still weighing on the outlook for recovery in the region.

 

"There is a moderate strengthening in March, likely due to calendar effects," said Heinrech Bayer, an economist at Postbank AG in Bonn. "We see the German economy is growing, although not at the pace we saw in the first quarter."

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News and Review of European Economic Zone (Germany)

 

German Bundesbank Cuts Inflation Outlook

Friday, June 6th, 2014

 

German Bundesbank cut its inflation forecast for this year, it reflects that the rate of inflation in the euro zone is still quiet.

 

German central bank reduces inflation projection for 2014 to 1.1% from 1.3% they predicted in December. Bundesbank sees inflation will reach 1.5% in 2015 and 1.9% in 2016. Bundesbank raised its forecast for economic growth this year to 1.9% from 1.7%. The predictions for GDP will expand by 2% in 2015 and 1.8% in 2016.

 

Today's report comes after the European Central Bank cut its forecast infalasi from 2014 to 2016 and launched a package of stimulus measures were unprecedented at the time of yesterday. Policy makers led by Mario Draghi introduce negative interest rates to save their money in banks and central banks injected liquidity which aims to increase lending to companies.

 

The German economy, which is the largest in Europe, accelerated in the first quarter of 2014 despite growth in the 18-nation eurozone weakened. Bundesbank President Jens Weidmann today warned of the risks from abroad.

 

"Heightened geopolitical tensions or renewed crisis in the euro zone will dampen GDP growth, not only through external trade, but also can affect the level of trust," Weidmann said in a statement

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News and Review of European Economic Zone (UK)

 

IMF: UK Housing Sector Facing Risks and Productivity

Friday, June 6th, 2014

 

Productivity and the housing sector is the biggest risk that must be faced by the UK, according to the International Monetary Fund warning. Comments from the IMF will add to growing concern today for the presence of bubbles in the UK housing market, especially in England and parts of southeast England. The Bank of England should maintain the monetary policy for the time being, the IMF said. Bagaimanpapun also, the UK economy has been printing strong rebound, according to the IMF. The interest rate should be raised before the Bank of England began cutting his quantitative easing, the advice of the IMF.

 

British Finance Minister George Osborne said he was very wary of risks to UK growth and agree that the unemployment rate did not go down fast enough. "We must remain alert to any risks that may still exist in the housing market," he said. The UK economy expanded for 5 consecutive quarter in the first kuartap this year, although the growth rate was slightly below expectations. Data released by the Office of National Statistics (ONS) in April, showed that gross domestic product (GDP) in the first quarter was 0.8%. Economists forecast growth rate of 0.9%.

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News and Review of European Economic Zone

 

ECB Need Time To Assess the Effectiveness of Policy

Monday, June 9th, 2014

 

The ECB probably will not know until the end of last year if effective policies, according to ECB Vice President Vitor Constancio. Last week, the ECB lowered interest rates, cheap allocate funds for lending, and affirm readiness to act in order to overcome the risk of deflation. ECB's Constancio said the central bank needs time to review the policies that have been implemented. However, the ECB's Constancio express policy of asset purchases remains an option if the euro-zone economy showed no response.

 

The ECB last week did not launch QE program (Quantitative Easing) but intimated keep open the possibility of QE if inflation expectations remain low and economic activity threatened. "With the current challenges the actions taken by the central bank enough. However, if there are negative shocks that could aggravate the situation, we will examine all policies that can be taken," said the ECB's Constancio.

 

ECB's Constancio comments at the weekend that the ECB may be sinyalkan will not change the policy until the end of the year. However, the ECB is still likely launch a QE policy as a last resort if the situation is forcing ammunition. The euro has not changed much on Monday. EUR / USD is now trading 1.3648; daily opening levels near 1.3644

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News and Review of European Economic Zone (UK)

 

Morgan Stanley Estimate BOE Raise Interest Rates Faster

Monday, June 9th, 2014

 

Analysts at Morgan Stanley said today they expect the Bank of England will raise interest rates in the first quarter of 2015, from a previous forecast in the second quarter. Analysts said the first quarter of 2015 the UK economy will be more robust, and inflationary pressures will increase. After the first rate hike, Morgan Stanley also expects to happen again twice rate hike of 25 basis points in 2015.

 

But analysts also mengatakn possibility of rising interest rates in 2014 as the economy heals, and business surveys indicate there is little (if any) of spare capacity within companies. Morgan Stanley also raised its economic growth forecast for the UK to 3.1% in 2014 from a previous forecast of 2.8%. While 2015 is expected to grow 2.7% from the previous 2.4%.

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News and Review of European Economic Zone

 

Euro Continue The weakening This Afternoon

Tuesday, June 10, 2014

 

The exchange rate of the euro to continue weakening this afternoon. The euro weakened against the U.S. dollar recorded up to the 1.3535 level. The euro also weakened against the Japanese yen to the level of 138.52. Against the pound, the euro weakened to the level of 0.8062.

 

Market participants began to react to the monetary easing policy decisions made ​​by the European Central Bank (ECB) last week. The ECB cut its benchmark lending rate from 0.25% to 0.15%. In addition the ECB also cut the deposit facility rate becomes -0.10%. The ECB also design programs cheap financing for banks.

 

Market reaction to the ECB's monetary policy is also reflected in the movement of the yield or yield U.S. and European bond opposite. U.S. bond yields rose, while the euro zone bond yields down. This implies a strengthening U.S. dollar.