The FOMC will not hike. This may seem to merely confirm what has become a consensus view. As of this morning many of market participants have come around to feeling there is no basis for FOMC to hike rates Wednesday afternoon. Yet, this sentiment was not nearly as strong into and immediately after the Fed’s Jackson Hole Policy Symposium "hawk-fest" three-and-a-half weeks ago.
The European Central Bank held interest rates and its quantitive easing on hold as expected on Thursday, July 21. The euro was weaker against major pairs after there was not clear signal on what the next step for the central bank is despite the anticipated negative effect of the Brexit vote on European growth by forecasters. Earlier in the week the German ZEW was a portent of things to come with a -6.8 confidence in the German economy for the next 6 months. For the full Eurozone the index was -14.7.
Regulators have yet to get a firm handle on the world's $35 trillion shadow banking sector with supervision and data gathering still too patchy for spotting risks properly, the global Financial Stability Board said on Wednesday.
Swift, the vital global financial network that western financial services companies, institutions and banks use for all payments and transfer billions of dollars every day, warned its customers yesterday evening that it was aware of cyber fraud and a number of recent “cyber incidents” where attackers had sent fraudulent messages over its system and $81 million was apparently stolen from a central bank.