Divyang Shah, IFR Senior Strategist
Divyang's focus is in following broad macro trends globally with a view to building a tradable analytical framework. He was editor of the flagship products at IDEAglobal as well as head of FX research and then moved to Chief Strategist at Commonwealth Bank of Australia before joining IFR.
Investors are increasingly worried about overvaluation and bubbles in some segments of the financial markets. Since monetary policy of the major central banks were instrumental in fostering the current risk taking environment it is unlikely that they will look to remove liquidity in a disruptive manner.
Thursday sees the release of eurozone flash HICP, with expectations that we will see a repeat of June’s 0.5% print. The risk is that steady inflation in Germany and further disinflation in the periphery will see another lower low on eurozone inflation.
Shah: There are three reasons why the BoE is unlikely to hike as early as August.