Weakness Likely to Persist in Early 2020

Weakness Likely to Persist in Early 2020 Before Rallying Later in The Year


The persistent weakness of the Euro against the US Dollar, which began in late September 2018, will likely persist in the first few months of 2020 although a rally could follow as the US Presidential Election in November comes closer and climbs up the trading agenda.To get more news about WikiFX, you can visit wikifx news official website.
　　For the Euro, the key problem is that economic growth in the Eurozone remains weak and the European Central Bank may therefore decide to ease its monetary policy even further. With the ECB deposit rate currently at -0.5% that might seem fanciful but there is nothing to stop its Governing Council from lowering the rate to -0.6% or -0.7%, even though market pricing towards the end of 2019 was still suggesting that rates will be on hold throughout 2020.
　　New ECB President, Old ECB Policy
　　Moreover, and perhaps more importantly, there is nothing to stop the ECB from increasing the asset purchase program that it restarted in November 2019 at a monthly rate of €20 billion or from widening the array of assets that it buys. It could also amend its forward guidance to suggest that monetary policy will be eased even further if seen as necessary. The previous ECB President Mario Draghi told his successor Christine Lagarde to “never give up” on propping up the Eurozone economy and that is advice she will surely take. There can also be little doubt that Lagarde will remain dovish and continue to press the Eurozones governments to ease fiscal policy by spending more or taxing less to help boost economic growth.
“The holy grail that we're all working toward is the end-to-end buying experience,” Bateman added.“The holy grail that we're all working toward is the end-to-end buying experience,” Bateman added.Fintechs that started out focused on simplifying and automating mortgage applications and platforms have been using the large sums of investment capital they've attracted to build out their capabilities, adding services like title and homeowners insurance, home-equity loans, realtor and appraisal networks. “In the next decade, we'll eliminate paper and friction from the homebuying journey and give consumers a one-stop shop where they can access all the tasks to get into a new home,” Ghamsari said. Banks and tech startups will continue to join forces In recent years, incumbents like JPMorgan Chase, Wells Fargo, and Ally have been handing off key components of their mortgage businesses to scrappy tech startups like Better, Blend, and Roostify.With margins thinning and competition intensifying from nonbank lenders like Quicken Loans and LoanDepot, a topflight digital-mortgage offering is becoming a standard requirement for banks. But the relationship is symbiotic. Part of the reason banking giants are investing in digital lending startups — Ally, Citi, Goldman Sachs, JPMorgan, Santander, and Wells Fargo have each put up capital — in addition to partnering or buying their services off the shelf is they recognize the value of these startups can grow dramatically with the scale and brand recognition that banks provide. “Whereas incumbents value startups for their speed and the opportunity to stay on top of potentially disruptive innovations, startups benefit from the scale and resources offered by larger established firms,” Garg said. Bank of America has been an exception to the trend, electing to dedicate a large chunk of its $10 billion annual tech spend to upgrading its internal and consumer-facing mortgage platforms, rather than outsourcing.