Tribble Agency
Tribble Agency


Euro zone inflation could stay low for months: Bank of Italy official

The Fed was all set to start raising rates in September. Two EUR-crosses stood out in particular this week, given their reaction to the European Central Bank and their respective ensuing significant responses: EUR/USD declined sharply by -3.00% to $1.1011, breaking its uptrend from the March, April, and July lows in the process (perhaps the beginning of a longer-term bear flag); and EUR/AUD dropped by -2.31% to A$1.5258 (losing its uptrend from the April, May, and June lows).

In other company news, United Kingdom broadband provider TalkTalk (London Stock Exchange: TALK-GB) said on Sunday it had hired defense company BAE Systems to investigate a cyber attack that may have led to the theft of personal data from its more than four million customers, Reuters reported. Under this logic and the statement made by the FOMC in September, it has become very hard to argue for a United States rate rise in 2015. Although a small bounce higher is possible after such a heavy round of selling, technical traders will be looking at the charts and wondering whether they can now begin targeting the 1.51 area which traders found confidence to be a potential "bottom" after multiple touches over the past month. Futures prices aren't necessarily reflected in moves after the opening bell.

Inside your free report, you'll discover an easy-to-use guide to three technical indicators with the power to seriously improve your trading and change the way you make money from forex.

Newsletter has been successfully subscribed.

I respect your privacy and will never pass on your email address to anyone else.

The Fed also indicated that when the tightening does come, it will likely be more gradual than expected. The latest round of monetary easing from China occurred just a couple of days following confirmation of GDP growth falling below the government target at 7%.

"President Draghi has kept an open-door policy to expanding QE even further than the €1.1 trillion originally planned", Mr Hayes said.

Asian stocks, meanwhile, extended their rally on Monday after the rate cut in China fueled risk appetite.

And it's not only China that's trying to juice its economy. European Central Bank President Mario Draghi said that rate cuts are being considered to stimulate the eurozone economy. Hints that the ECB's ¤1 trillion quantitative easing programme might be extended, possibly coupled with another deposit rate cut, scored a big hit with markets last week. And that will have the same effect.

With no signs of any imminent U.S. rate rises, it looks like stocks could have a lot further to run this side of Christmas.

Sterling gained 0.1 percent to 71.88 pence per euro after reaching 71.69 pence on October. 23, its strongest level since August. 21.

Let's see what happens next week. "Unlike the last two quarterly results season, when the markets approached with an optimistic stance, this time around there was caution and anxiety", Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

European stocks were especially supercharged by last week's news, with Germany's benchmark share index finishing the week nearly 8 per cent higher.

follow

editors' picks

October 26, 2015
City Go Top, As Manchester Derby Ends In Stalemate
They lost Sergio Aguero due to injury but it does not seem to stop them from scoring loads of goals in their last two games. In a wild Premier League season where no one has looked convincing, City have emerged as narrow title favorites.

October 26, 2015
Chiefs turn back Steelers 23-13 to snap 5-game losing streak
Matt Cassel made his starting debut with the Cowboys, hitting on 17-of-27 passes for 227 yards and one touchdown. I think that was the bottom line , us staying aggressive in all facets of the game.

October 26, 2015
Harry sad One Direction show was cancelled
Previously, when they still had Zayn Malik in the band, the boys would still perform even if the band was not complete. Before the latest concert, Liam apologised on Twitter to worried fans for letting them down.

October 26, 2015
Eight civilians injured after India and Pakistan exchange fire near Kashmir border
Protesting against ceasefire violations alongside Line of Control (LoC), Pakistan summoned a senior Indian diplomat on Monday. The officer also said that BSF has been appropriately and effectively retaliating Pakistani shelling and firing .

October 26, 2015
Amazon posts profit as North America sales jump
Amazon's operating income was $406 million in the quarter, compared to an operating loss of $544 million in the previous year. " Prime growth is fueling Amazon (in) getting a bigger share of the household budget", said Cowen analyst John Blackledge.

October 26, 2015
Lewis Hamilton wins his third F1 World Championship
Hamilton was faster off the block, but also managed to run wide, making contact with his team-mate and pole man Nico Rosberg . But Rosberg looked less than amused when Hamilton threw a cap into the German's lap while waiting to go out to the podium.

October 26, 2015
Chinese president visits Manchester to talk investment
He met former City players, Patrick Vieira and Mike Summerbee, and watched a training session. It comes ahead of a referendum on Britain's continued membership of the bloc.

October 26, 2015
WTA Finals: Halep cruises, Sharapova finds going tough
A forehand approach earned her double set point and when Sharapova sailed a backhand, Radwanska had the 55-minute opener in hand. I have confidence and I just want to stay focused, because after tomorrow I will have a tough match.

October 26, 2015
Plagues plagued the Bronze Age
Pestis heredities have been contaminating human populaces even before there was any recorded confirmation of infection flare-ups. But certain crucial genes that made the plague so virulent in the common era seemed to be missing in the Bronze Age bacteria.

October 26, 2015
Apple Music for Android Screenshots Leak
Evident from the latest screenshots , the app is being redesigned for and expanded to Android platforms. For one, they wouldn't be able to alter a song's cache size that they have saved for playback offline.