• Eurozone 2016 outpaces US
  • President Trump fires acting Attorney General
  • Is inflation back in the Eurozone?
  • Back of Japan leaves policy unchanged

The Eurozone has reported GDP growth for 2016 that outpaced that of the United States. Current figures show a 1.7% growth rate in the Eurozone versus the 1.6% increase in the more U.S. This is the first time this has been the case since the Great Recession of 2008.

Economists who have been more sanguine about prospects in the U.S. versus the Eurozone might need to take pause. In addition to the GDP surprise, the unemployment rate unexpectedly dropped to 9.6% and inflation clocked in at 1.8%. Inflation being at or near the European Central Bank’s (ECB) target, discussion will ensue whether or not the ECB should taper off their quantitative easing program early.

President Trump has fired acting Attorney General (AG) Sally Yates, after she ordered the Justice Department not to defend President Trump’s executive order regarding the blocking of immigration to the United States of seven different countries. U.S. dollar is not basking in the news.

The Bank of Japan has left their monetary policy unchanged, but most importantly maintained its forecast for inflation through 2017. The U.S. Federal Reserve announces its current monetary policy tomorrow.

EURUSD:  Euro is up substantially against the U.S. dollar, as positive economic data from the Eurozone and political tension in the U.S. create a stimulus for Eurodollar strength.

GBPUSD:  Sterling is up against the greenback on the latter’s general weakness. Some dollar weakness has been undermined by decreasing borrowing in the U.K. public sector as reported this morning.

AUDUSD:  Aussie dollar is up against its American cousin on the latter’s broad weakness.

USDCAD:  U.S. dollar is roughly even with Canadian dollar today. Rising crude output in the U.S. is diminishing the optimism for OPEC cuts.