GS: Stopping the US government will take 0.2% of the GDP growth

The US investment bank Goldman Sachs predicts that the US government's shutdown will reduce GDP growth by 0.2% in the first quarter, but will soon be lived thru.
The negative effect is expected to be offset in the second quarter of the year if it is assumed that the government's shutdown will be restored by then.
According to the bank, the impact of this event on the financial markets will be "minimal".
Such government stopovers will have a lesser impact on the US economy, GS predicted.
Now that the federal government has failed to negotiate a new increase in the debt ceiling, the GDP of the world's largest economy is expected to fall by 0.2 percentage points for each week in which this event is in place, GS said.
The bank, however, is clearly not worried that this will last too long, or that the damage to the economy will be excessive, predicting a minimal impact on growth for the whole year.

By the end of the year ECB may extend the program of quantitative easing

Thursday was very eventful for the major currency pair. Immediately after the September meeting of the European Central Bank, the euro/dollar rose sharply and touched a two-week high at 1.1316, but quickly came back under the 1.13.
ECB left the interest rate at zero, the deposit rate at -0.4% and the monthly purchase of assets amount to 80 billion euro. In his comments after the meeting, Mario Draghi said that QE will continue until the designated period (March of the following year) or longer, if adjustments of inflation are required. The consumer price index, on the assessment of the ECB, is steadily improving. Eurozone GDP in the third quarter will be equal to growth in April-June this year, and in general, the ECB expected growth of the region's GDP by 1.7% by the end of 2016.
Investors appear to be reasoned as follows: while the statistics for the euro area at most part is positive, the European regulator will not increase or extend QE. However, such a possibility is present for further meetings. March 2017 is not so far away as it seems. For half a year significant improvement in the European economic system could not happen, and the ECB is not one of those, who would make desperate attempts to align the boat at the last minute. Typically, Mario Draghi warnes markets in advance about the bank's readiness to act. It is possible that in November and December, the ECB would inform the capital markets of the intention to expand or extend the QE. In the meantime, let the euro fans rejoice.

The dollar fell, the yen rose after data on the US economy and the Bank of Japan decision

The dollar fell, the yen rose after data on the US economy and the Bank of Japan decision

The dollar fell on Friday after the release of US GDP, which growth is at a slower pace than expected in the second quarter, further weakened the expectations of the new US Federal Reserve raising rates in September.
At the same time, the Japanese yen strengthened after the Bank of Japan expanded its stimulus measures by the end of the two-day meeting, but disappointed investors who expected a more ambitious action in support of growth and inflation.
The yen jumped by 3.08% to 102.03.
The Bank of Japan expanded its stimulus measures on Friday, doubling the volume of purchases of securities exchange-traded funds (ETF) because of pressure from the government and financial markets, but disappointed investors who were waiting for more decisive action.
However, the central bank said that will conduct a thorough assessment of the impact of negative interest rates and large-scale program of buying assets that can point to a large-scale revision of the incentive measures.