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HSBC believes that ECB will cut rates and extend QE

In a report on the European Central Bank (ECB), the HSBC bank has dissected the bank’s agenda, with an inflation rise one of the biggest priorities. HSBC believe that the markets doubt the willingness of the ECB to tackle the inflation problem, of reaching the desired 2% threshold. Also, the euro area is unresponsive to economic slack, and therefore recovery.
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Markets steady as Thanksgiving marks beginning of festive season

It is a steadier Thursday's trade with Thanksgiving holiday being celebrated in USA, and with many markets not being fully opened till Monday. This is also beginning of festive season, which is sometimes marked by lack volatility, but also sharp unexpected moves. Aussie is still being stable above 0.72 handle despite decline this morning.  Read more...

M3 Money Supply increased to 5.3%

The annual growth rate of the broad monetary aggregate M3 increased to 5.3% in October 2015, from 4.9% in September, averaging 5.1% in the three months up to October. No change was expected. The components of M3 showed the following developments.  Read more...

EUR/USD Daily Forecast – 26 November

Yesterday's Financial Stability Review showed that the euro area financial system has been resilient through occasional bouts of financial market volatility in the second half of the year. The twice-yearly report highlights that the likelihood of an abrupt rise in global risk premia has become more pronounced as concern shifts to emerging market economies. The review finds that measures of systemic stress remained contained amid periods of stress related to turbulence during the summer in Greece, followed by a sizeable correction in Chinese asset prices. Read more...

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