I suppose we will see a slightly weaker Euro, because of the ECB's tendency to expand its QE programme further.
An easing bias remains, but it is not as explicit as in July when the RBNZ's outlook changed significantly.
Asia-Pacific economies are now feeling the pinch of a Chinese economic slowdown, being under large downward pressure.
The current price weakness of commodities is due to a combination of factors.
Our current forecast is for the recession of 3.5% up to 4% this year, but not significantly worse.
I am not sure whether I would use the word "perilous", but I agree in a sense that the surprising growth of the Swiss economy in the second quarter does not necessarily indicate that Switzerland has barely been affected by the Franc shock following the SNB's decision to abandon the minimum exchange rate regime.
I suppose that China has only become a scapegoat over the last three days.
As you may observe the historic data during the last two years when the Yen has found its peak, the depth of the adjustment was five figures.
I also expect that Japanese economy will remain stagnant for a while from now.
The primary reason behind this move was to make Chinese exports more competitive
With the commodity prices collapse, Canada's stagnating economy could force its central bank to deploy the type of extraordinary stimulus adopted in the US, Europe and Japan. With the rate now at 0.5%, it is nearing the point where other central banks decided to begin bond buying programs to force rates lower still and help companies borrow more cheaply. In
It may be a little bit optimistic, but there is in fact a forecast that trend GDP growth is going to return.
Irrespective of whether this agreement gets signed off or not, Greece still faces significant challenges to stay within the Euro area.
First off all, I believe that next two to six months the first few barrels are likely to be the ones in storages, as well as the ones they have ramped up in terms of incremental fields.
My point of view is that the economy is growing, but it is not obviously growing above trend.
Generally, in terms of the commodity markets, even though they are trading at the lowest level since 2009, this still creates plenty of opportunities for traders.
I would say that I broadly agree with that point of view.
Agriculture and mining are still very important drivers of economic growth in New Zealand.
We expect the Euro to be under moderate pressure during the third quarter, as the partial recovery of the common currency was mainly due to technical reasons, including positioning.
First of all, it will obviously need huge changes in the economy, with a restructuration in order to achieve this goal.
The global economy is recovering, but at a a gradual and uneven pace.
Talking about the potential for another rate cut, I would say that there is still a lot of uncertainty in regards to the Greece, since we are not even in the process of negotiating the third bailout, which should start next week, in case everything goes according to the plan.
We do agree with the economists, since we are still looking for a cut in the overall rate to 50 basis points next week.
The Bank of England is clearly worried about the situation in Greece, but so far it is too early to tell whether the effects are strong enough to delay their current trajectory directly.