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Tag: inflation

Long USD ?>

Long USD

I’ll open a long in the USD as by macro I expect a rate hike this month or early next year because of the following things: 1- Inflation is at 1.6%, close to the 2% that the FED has stablished as a perfect inflation rate. Recently OPEC has agreed (or at least they are in advanced talks about it) to cut oil production, so inflation will boost as oil prices are going up because of the lower production. 2- At…

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Draghi needs a new weapon ?>

Draghi needs a new weapon

In his last speech, Mario Draghi said that the policy conducted by the ECB right now (they are conducting a negative interest rates and QE policy) is working, but he asked for more time to see the results. Actually, the ECB is buying around 80 billion euros a month in order to try to increase inflation in the euro area while they keep interest rate in the negative area, that’s in the thin line between zero and negative growth. But,…

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