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March 28, 2016

Morocco joins global easing efforts, Oil pares down last week losses.

Morocco joins global easing efforts, Oil pares down last week losses.

Central Bank of Marocco lowered key rate, joining the club of “monetary easing banks” which now numbers 46 countries.
For this year there were 15 cuts of interest rates indicating slowing global economy needs all-round support of central banks from different countries.
The trend was set by ECB which tries to expand QE extension, keeping on lowering rates and carry out massive buyout on bond market.
In contrast US Federal reserve is moving indifferent direction, striving to increase rates despite numerous warnings of slowdown if borrowing costs will become too expensive for the world.
In Thursday EZ March inflation data will be published which will indicate the pace of contraction of European economy. Prices are expected to extend February declines.
In Friday NFP report will throw light on further FED measures, analysts expect the expansion of US labor market will remain on February level or even increase.
There is growing controversy between statements of US Fed officials – dovish rhetorics of Fed head Janet Yellen on 16 March press conference mixes with hawkish promises of other officials, so position of the committee is quite unclear.
To the other news.
Europe is on holidays today, so most markets are closed. GBP/USD rose 0.24% to 1.4159 as Brexit risks are sidelined, USD/RUB and EUR/RUB decline, as commodity currencies mirror Oil advancement. WTI and Brent, two most traded benchmarks rose 0.53% and 0.17% respective after steep decline in last week on gloomy EIA data, showing stockpiles increased more than 3 times than projected (9.31M versus 3.1M barrels). Oil imports also increased in US last week.
US stocks closed in red on Friday, reducing risk exposure ahead of holidays.

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