headlines jackson hole

Headlines: Future of Yellen, Aeroplan…

In Business and Currency by Continental StaffLeave a Comment

Every week we bring you the world’s biggest currency, business, and travel news. This week: the GBP flirts with new lows against the EU, US inflation is below expectations, Aeroplan looks to replace Air Canada, Bitcoin hits a record high, and Janet Yellen has a 20% chance of being reappointed.

GBP falling

The pound is flirting with 10 month lows against the euro at around 1 GBP to 1.0981 EUR, and Morgan Stanley believe that the EUR could even surpass the GBP by 2018. The closest that the EUR has come to parity with the GBP in the recent past was in 2008 when the GBP fell to 1 GBP to 1.0200 EUR. The GBP has been on a downward trajectory against the EUR since Brexit last June. The continued uncertainty in England, combined with big wins for centrist parties in Europe (particularly Macron’s victory in France), have boosted the EUR. Analysts also believe that the ECB could soon begin to cut back on its quantitative easing program which has kept the value of the EUR low.

Inflation low

The US Labor Department’s Consumer Price Index rose by just 0.1% last month (month on month), economists had predicted a 0.2% increase. The USD fell as a result of the news as it may discourage the Fed from raising rates. The annual rate of inflation has risen by 1.7% so far this year, below the 2% rate that the Fed has targeted.


Aimia Inc, which runs Aeroplan, posted a loss of $25.1 million last quarter and is looking to replace its current partner Air Canada. The Montreal based company may replace Air Canada with a multi-airline program.

Bitcoin high

Bitcoin hit an all time high of US$3,500 up 20% for the week as stocks fell due to escalating rhetoric between the US and North Korea. Gold also rose by 2% this week to its highest level in two months.

1 in 5 Chance Trump reappoints Yellen

Economists believe there is a 20% chance that Trump will reappoint Yellen as Federal Reserve Chair. Although she has the best odds according to economists, most political commentators believe that she will be replaced. Trump has in the past criticized the Fed for not being hawkish enough when it comes to raising rates.

Stay informed. Stay Current.