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ECB’s Lagarde Sees Strong Chance of a Rate Hike This Year

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(C) Reuters. FILE PHOTO: President of European Central Bank Christine Lagarde speaks during a joint news conference with Cypriot President Nicos Anastasiades at the Presidential Palace in Nicosia, Cyprus March 30, 2022. REUTERS/Yiannis Kourtoglou REFILE – QUALITY REP

WASHINGTON (Reuters) -The European Central Bank is likely to end its bond purchase scheme in early third quarter and raise rates before the end of the year, European Central Bank President Christine Lagarde told CNBC on Friday, outlining the bank’s exit from stimulus.

With inflation at record highs and still rising, the ECB has been cautiously unwinding support for months and policymakers are now openly talking about the possibility of an interest rate rise, the first for the bank in over a decade.

“If the situation continues as predicated at the moment, there is a strong likelihood that rates will be hiked before the end of the year,” Lagarde said. “How much, now many times, remains to be seen and will be data dependent.”

The ECB last week confirmed plans to end bond purchases, known as quantitative easing, sometime in the third quarter but Lagarde said the move should happen in the early part of the quarter.

Such a timeline would suggest that the ECB could be in place to raise rates at the July 21 meeting, as the conclusion of bond buys is considered a precondition for any interest rate move.

Inflation hit 7.5% last month, nearly four times the ECB’s 2% target and could still rise until mid-year.

But the war in Ukraine is complicating life for the ECB as high energy prices and sanctions on Russia sap confidence, eat into purchasing power and cut deep into growth.

Still, Lagarde said that the bloc’s economy will continue to grow and stagflation or a period of high inflation coupled with stagnating economic output, is unlikely.

ECB’s Lagarde sees strong chance of a rate hike this year

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Original Article: investing.com

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U.S. VP Harris to Slam North Korea Missile Test, Visit DMZ

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U.S. VP Harris visiting Seoul, Korean DMZ hours after Kim’s missile test By Reuters

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World 2 hours ago (Sep 28, 2022 07:36PM ET)

(C) Reuters. FILE PHOTO: U.S. Vice President Kamala Harris walks to deliver remarks on the USS Howard naval ship, at Yokosuka Naval Base, in Yokosuka, Japan September 28, 2022. REUTERS/Leah Millis/Pool

By Trevor Hunnicutt

TOKYO (Reuters) – U.S. Vice President Kamala Harris was headed to Seoul and the Demilitarized Zone (DMZ) separating the Koreas on Thursday, just hours after North Korea test-fired missiles and underscored ongoing regional tensions.

Aides said the visit is intended to show unwavering U.S. commitment to South Korea’s security but took on new urgency after the two short-range ballistic missiles were shot off North Korea’s east coast on Wednesday.

U.S. President Joe Biden’s aides have been shoring up alliances to manage China in the region, including over Taiwan. But South Korean President Yoon Suk-yeol told CNN in an interview aired on Sunday that in a conflict over Taiwan, North Korea would be more likely to stage a provocation and that the alliance should focus on that concern first.

The missile test is the second since Sunday and comes two days after South Korea and U.S. forces conducted a military drill in waters off South Korea’s east coast involving an aircraft carrier.

North Korea’s Kim Jong Un has said it is developing nuclear weapons and missiles to defend against U.S. threats.

Following a stop at a military base in Japan, Harris called recent missile launches part of an “illicit weapons programme which threatens regional stability and violates multiple U.N. Security Council resolutions.”

Harris’ visit to the DMZ is the first by a senior Biden administration official and is expected to follow a meeting with Yoon.

Several former U.S. presidents, and Biden himself before he became president, have visited the DMZ, but former President Donald Trump became the first to have met a North Korean leader there when he held a third meeting with Kim Jong Un in 2019 as part of his unsuccessful effort to persuade Kim to give up his nuclear and missile programs.

The DMZ is often described as the world’s last Cold War frontier and has existed since the 1950-53 Korean War ended in a armistice rather than a peace treaty.

U.S. VP Harris visiting Seoul, Korean DMZ hours after Kim’s missile test

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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

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Vietnam Q3 GDP Growth up 13.67% Y/y on Rebound in Manufacturing

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Vietnam Q3 GDP grows 13.67% y/y vs 7.83% expansion in Q2 – stats office By Reuters

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Economic Indicators 40 minutes ago (Sep 28, 2022 10:17PM ET)

(C) Reuters. FILE PHOTO: Shipping containers are seen at a port in Hai Phong city, Vietnam July 12, 2018. REUTERS/Kham/

HANOI (Reuters) – Vietnam’s gross domestic product in the third quarter grew 13.67% from a year earlier, the fastest pace in decades, thanks to robust manufacturing and exports and a low base effect, government data released on Thursday showed.

The industrial and construction sector in the July-September period grew 12.91% from a year earlier, the General Statistics Office said in a report. The services sector expanded 18.86%, while the agricultural sector grew by 3.24%.

Vietnam Q3 GDP grows 13.67% y/y vs 7.83% expansion in Q2 – stats office

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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

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Dollar Powers to New Two-decade High on Fed Outlook, Russia Jitters

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Dollar powers to new two-decade high on Fed outlook, Russia jitters By Reuters

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Economy 29 minutes ago (Sep 21, 2022 09:45PM ET)

(C) Reuters. FILE PHOTO: Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo

By Kevin Buckland

TOKYO (Reuters) – The U.S. dollar pushed to a fresh two-decade high versus major peers on Thursday, propelled by the Federal Reserve’s hawkish outlook for interest rates and Russian President Vladamir Putin’s mobilisation of more troops for the war in Ukraine.

The dollar index, which measures the currency against a basket of six counterparts including the euro and sterling, rose as high as 111.65 for the first time since June 2002.

The greenback also notched new highs against regional currencies from the Aussie and New Zealand dollars to the offshore Chinese yuan and the Korean won, as well as the Singapore dollar and Thai baht.

The Fed issued new projections showing rates peaking at 4.6% next year with no cuts until 2024 after raising its target interest rate range by another 75 basis points overnight to 3.00%-3.25%, as was widely expected.

The dollar was already supported by demand for the safest assets after Putin announced he would call up reservists to fight in Ukraine and said Moscow would respond with the might of all its vast arsenal if the West pursued what he called its “nuclear blackmail” over the conflict there.

The two-year U.S. Treasury yield reached a fresh 15-year high of 4.132% in Tokyo trading.

“Both the Fed projections and the Russia headlines contributed to the dollar’s strength, which was particularly acute against the euro and other European currencies,” said Shinichiro Kadota, a senior FX strategist at Barclays (LON:BARC) in Tokyo.

“Commodity currencies also took a big hit due to the deterioration in risk sentiment.”

The euro weakened to a new 20-year trough of $0.9807, before trading 0.23% down on Wednesday at $0.9812.

The dollar rose 0.23% to 144.44 yen, edging back toward the psychological 145 mark where it was rebuffed two times this month. It hit a 24-year high of 144.99 on Sept. 7.

A divergence in monetary policy is at the root of the dollar-yen’s climb, with the Bank of Japan widely tipped to stick to ultra-easy policy settings later in the day.

The Bank of England also announces policy on Thursday, with markets split on whether a 50 or 75 basis point hike is in the offing.

Sterling fell to a fresh 37-year low of $1.1225, and last changed hands at $1.1233, a 0.3% decline from the previous session.

The Aussie declined 0.63% to $0.65915 after having touched $0.65895, its lowest since May 2020. Liquidity in the currency may be thin with Australia observing a public holiday.

Dollar powers to new two-decade high on Fed outlook, Russia jitters

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(C) 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

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