Should We Expect Helicopter Money This Year?

Should We Expect Helicopter Money This Year?

Should We Expect Helicopter Money This Year?

The Post-Brexit UK PMIs continue to impact GBP, with the currency seeing an extension of the downside against both EUR and USD, falling to 1.3150 against the latter, lower by around 140 pips from its high earlier in the session. Support has been found at this level, with stops touted below this.

 

JPY and Japanese Fiscal Stimulus

Bank of America – ML assumes that the Bank of Japan will want to take part in the stimulus for Japanese economy. While the markets are guessing the size of the fiscal push the global sentiment equally likely depends on what the Bank of Japan delivers next week. (Bank of America Merrill Lynch) Signals that a big fiscal package may have little impact in the short term which would require some cooperation from Bank of Japan.

The thought is that the markets have priced in probably more than will be delivered by the government so the announcement may see USD/JPY fall to 105. They do not expect helicopter money any time this year, while it is still possible in 2017 as the possibilities of buying JGBs run thinner – secondary market will be drained by that time so the Bank of Japan may need to buy directly from the ministry of finance and this will be an equivalent of helicopter money. 

Want Your Money to Work for You?

Open an Account Here

 

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on email
Email

Recent .

Dogecoin is going to the moon… literally!

Dogecoin is going to the moon… literally!  While the cryptocurrency markets have been put through the mill the past few weeks, Dogecoin managed to steal the spotlight …

Read More →
Stock of the Week: Apple in huge demand, beats estimates by billions.

Stock of the Week: Apple in huge demand, beats estimates by billions. Apple beat estimates for quarterly earnings by billions of dollars. We look at …

Read More →
Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!  

Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!   It has been a momentous week for Facebook CEO Mark Zuckerberg who …

Read More →
Big Tech earnings roll in – Huge profits for Google, Microsoft and more! 

Huge profits for Google, Microsoft and more! Major big tech companies have released their quarterly earnings. We look at how some of the world’s biggest businesses performed so far this year!     Google, …

Read More →
MetaTrader 4 vs MetaTrader 5 – which is the better platform?
Bitcoin bounces back: Is buying the dip worth the risk?

Bitcoin bounces back: Is buying the dip worth the risk?  Bitcoin has recovered some of its losses following its fall from a record high of $65,000. Considering the crypto king’s astonishing performance in 2021, should …

Read More →
Oil summit: Waste of time
Oil market outlook: bumpy ride ahead?

2020 has been disastrous for the oil markets, however, it appears that oil has recovered most of its losses and is now hovering near pre-pandemic levels. In today’s article we will take a look at oil’s recent performance and explore the opportunities that may lie ahead.

Read More →
˄