Welcome to November and a week that is expected to see increased volatility in the markets as the Bank of Japan’s decision to begin Quantitative Easing is fully digested. The move by the Bank of Japan to increase liquidity really has put the cat amongst the pigeons. This decision was prompted by a desire to achieve a 2% inflation target and will be adjusted should risks threaten this.
It could be said that the focus has been switched from the US to Japan and Eurozone as Janet Yellen signalled the end of the US deployment of quantitative easing. Whilst Japan has taken up the mantle, we shouldn’t hold our breath for Mario Draghi to follow suit as the ECB are waiting to see how their recently implemented easing measures are faring.
The first week of a month is always packed with big figures and this week we see the ECB’s interest rate decision and subsequent grilling of Mario Draghi, the interest rate decision from the Bank of England, and the week ends with the non farm payrolls data from the US.
Today, we have PMI from the Eurozone, UK and the US.