5 Nov 2014
Divergences between Europe and the US escalating - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank reiterates the divergence between the US and Europe’s economic performance.
Key Quotes:
“While the US economy is recovering, the Eurozone is clearly struggling as reflected in the final manufacturing PMI reported at 50.6 in October after decelerating to a 14-month low of 50.3 in September”.
“This divergence in economic performance means that the FOMC may “well move to raise rates sooner than thus far assumed” according to the Dallas Fed’s Fisher and at the same time the ECB is under growing pressure to launch a full scale QE”.
“The markets will be looking for reassurances from President Draghi that the ECB is ready to make bold decisions including a full scale QE amid persistently low inflation and bleak outlook for the Eurozone economy”.
Key Quotes:
“While the US economy is recovering, the Eurozone is clearly struggling as reflected in the final manufacturing PMI reported at 50.6 in October after decelerating to a 14-month low of 50.3 in September”.
“This divergence in economic performance means that the FOMC may “well move to raise rates sooner than thus far assumed” according to the Dallas Fed’s Fisher and at the same time the ECB is under growing pressure to launch a full scale QE”.
“The markets will be looking for reassurances from President Draghi that the ECB is ready to make bold decisions including a full scale QE amid persistently low inflation and bleak outlook for the Eurozone economy”.