Current World Market State

The World’s economic progress is currently in weakened state and slowing down after great progress was made since the 2009 global recession. Mario Draghi the Federal chairman of the European Central Bank (ECB) dedicated to inject 70 billion euro per month into the euro economy to prevent deflation (value of assets depreciating) in a bond buying program (increase money supply and decrease interest rates). This stimulus comes after the Swiss National Bank abandons their cornerstone currency caps which lead the Franc to collapse in the early trading session. This has spurred other countries to cut rates and yearly projections as the price of crude continues to see an overall slide. This parabolic sell off in oil price is good for the consumer but is a drag on most countries as it heightens the fear of “deflation not inflation”. We project in 2015 these pressures will result in a “currency war” as most countries will try to weaken their currency in order to increase exports of products and stimulate growth. All focus will be on Europe (Greece) and Oil prices for the years to come. 

David Ksiazek

Posted in: Trades