It is back to work for the world’s central bankers. The ECB’s Mario Draghi had his say this week, commenting that the ECB has had a “very, very preliminary discussion” about tapering its QE programme and it is the turn of the US FED’s Janet Yellen on the 19th and 20th of September. The FOMC has raised rates by 25bp twice so far this year, but the FED watchers amongst our readers do not think they are gearing up for another raise at the upcoming meeting, with 72% thinking they will hold. And this week’s market action seems to agree with them. The US dollar index has hit a 32-month low, also 12% below its level when Donald Trump became president, and US treasury yields are also heading down and at their lowest levels since the election.
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