Not exact matches
The euro has been one of the best performing major currencies this year, with its strength stemming partly
from growing confidence about the outlook for the euro zone
economy and partly
from weakness in other major currencies such as the yen and British pound.
Renewed confidence
in the European
economy and persistent
weakness in the dollar have driven the euro up 16 percent against the U.S. currency
from the first quarter last year to the end of March 2018.
«That's a key change
from the past seven years, when
weakness in at least one major region offset strength elsewhere and created fragility that made the global
economy more sensitive to shifts
in growth at the margins.»
Following a January rally, the global commodities complex underwent declines
in February before partially recovering
in March; for the first quarter as a whole, the benchmark Thomson Reuters CoreCommodity CRB Index (CRB) gained 0.8 % on a price - only basis.1 Among the 19 component commodities tracked by the CRB, advancers had a slight edge over decliners, buoyed by growth
in global
economies and
weakness in the trade - weighted US dollar, which retreated 2.1 %, according to the Federal Reserve's (Fed's) US Dollar Index.1 Aside
from robust gains for a host of agricultural products, oil and gold were also among the commodity winners.
But it may well be
in China's and the global interest that the liberalization process proceed more gradually than is currently envisioned, so that capital outflows
from China do not threaten China's own financial stability and spread
weakness to the global
economy at large.
However, it is far
from certain that this surge will persist, and quite conceivable that it will recede later
in the year
in response to
weakness in the real
economy.
The same is true, though on a less spectacular scale, for the smaller east Asian
economies, a number of which have bounced back strongly
from the
weakness seen
in the first half of last year.
Baker expects that the
weakness from the housing market, which is already spreading over to other sectors of the
economy, will have an even larger impact
in 2007 as consumers lose the ability to borrow against dwindling home equity.
Among the explanations that have been put forward are the increased credibility of central banks
in controlling inflation (inflation rates remain below 3 per cent across the developed world), the low level of official interest rates
in the major
economies reflecting low inflation and the continuing
weakness in some
economies, a glut of savings on world markets particularly sourced
from the Asian region, and changes to pension fund rules
in some countries which are seen as biasing investments away
from equities towards bonds.