Additionally, based on the theme of monetary
policy divergence on a global basis, we would anticipate that, all things equal, the US dollar will likely strengthen versus other developed markets» currencies, particularly over the longer term.
Not exact matches
These contrasting inflation outlooks suggest further monetary
policy divergence is ahead (read more
on this
divergence and its investing implications in our recent post Opportunities emerge as central banks diverge.).
We expect interest rates to rise, as U.S. and eurozone monetary
policies gradually normalize, though structural factors and further central bank
divergence are likely to keep a lid
on rates.
This
policy divergence from the United States may help keep a lid
on U.S. rates, at least in the near term.
These
divergences in monetary
policy between the Fed and the BoE
on the one hand and the ECB and BoJ
on the other imply probable further volatility in the currency, fixed income and equity markets.
Also in 2015,
divergence in monetary
policies unsettled developed currency markets: the European Central Bank and the Bank of Japan continued quantitative easing programs while the Federal Reserve rhetorically led markets
on a long, slow walk to the first increase in the fed funds rate since the global financial crisis.
Our view
on the major currency pairs (US dollar / euro, US dollar / yen, US dollar / Australian dollar) boils down to
divergences in global monetary
policies.
This profile is broadly in line with that presented in the February Statement
on Monetary
Policy, though recent movements in world oil prices are likely to introduce a
divergence between headline and underlying measures of inflation in the short term.
The dollar rocketed higher in 2014 - 2015
on the back of monetary
policy divergence, however I'd view the dollar's weakening in 2016 - 2017 as a correction of this move back towards PPP levels.
Against this background, we think that the
divergences in the monetary
policies of the major economies are likely to become more apparent, which could increase pressure
on some central banks and magnify market volatility.
«Some of the most intense and sharpest
divergence of views about Don't Ask, Don't Tell exists among the chaplains,» states the Pentagon report, released last week,
on the potential impact of repealing the
policy.
Although the vote shows that keeping in - line with US
policy was not a persuasive case
on its own, it should be remembered that the transatlantic relationship has seen differences and
divergences before and recovered (for example, over the Falklands War).
But whether you can detect a smidgeon of
divergence between New Labour and Tory
policies on «modernising» public services is not the point.
There is increasing
divergence with England
on qualifications
policy; for example, GCSE and A-Levels will still be able to be assessed in a modular way.
http://www.rrf.org.uk/pdf/History%20of%20Govt%20initiatives%20J%20Chew.pdf Beginning Reading: Influence
on Policy in the United States and England 1998 - 2010 Author: Beth Robins Abstract The study investigated the
divergence in beginning reading methods between the United States (US) and England from 1998 to 2010.
aud usd and nzd usd fundamental daily forecast monetary
policy divergence likely to keep pressure
on aussie kiwi
I've also cut off discussion of
divergence as a general topic, per my previous comment and general
policy on off topic.
The
divergence on climate
policy disappointed environmentalists who had worked to forge a united platform between the Clinton and Sanders camps.