Stock markets in Europe gained 1-2 percent in morning trading on growing speculation that the U.S. Federal Reserve Chairmen Ben Bernanke will announce further quantitative easing at a speech scheduled later this week in Jackson Hole, Wyoming. A second round of quantitative easing wrapped up in June and consisted of a $600 billion program to buy U.S. debt to inject cash into the financial system.
Earlier this month Bernanke reaffirmed a pledge to continue with the current ultra-low interest rates. The combination of low yields together with an increase in the supply of the currency will likely lead to downward pressure on the dollar.
Source: BBC News
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by Scott Boyd (see all)
- Japan’s Demographic Trap - 25 June 2012
- Officials Talk Openly of Greek Euro Exit - 16 May 2012
- Greek Voters Prepare to Roll the Dice - 15 May 2012