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ECB adopts symmetric 2% inflation target as result of monetary policy review

Stephan Behnes/iStock via Getty Images Following in the footsteps of the Federal Reserve, the European Central Bank's Governing Council adopts a symmetric 2% inflation target over the medium term as

Greenback Stabilizes

The dollar is consolidating yesterday's losses.Equities are lower, and benchmark yields are little changed.The S&P 500 is trading a little lower following yesterday's 0.2% decline.Gold rose almost 1% yesterday, the most in a couple of weeks, on the back of the weaker dollar.WTI for December delivery slumped 4% yesterday and slipped below the $40-mark and straddled today.

Dollar Slumps As Yields Rise

The dollar is falling against most of the world's currencies today.Sterling and the Norwegian krone are leading the majors higher.The Chinese yuan extended its gains and is now at the best level since July 2018.In Asia, most of the large markets gained, but China, India, and a handful of smaller bourses were sold.Europe's Dow Jones Stoxx 600 is off for the third day and the sixth session in the past seven.

Sterling Sparkles In Dollar Setback

China's economy expanded by 2.7% in Q3, a little below the Bloomberg survey median forecast of 3.3%, and Q2 growth was revised to 11.7% from 11.5%.The UK has been struck by a resurging virus, the lack of progress with EU trade talks, and the pre-weekend downgrade by Moody's.In an otherwise light calendar today, six Fed officials speak. These include Chair Powell at an IMF-sponsored discussion of cross-border payments and Vice-Chair Clarida on the economic outlook.Oil prices have recovered from their April lows but have been moving broadly sideways for three-four months.

The Central Bank Watch

The central banks have increased their assets by 38.5% in the last twelve months, which has had a profound effect on both the bond and equity markets globally.They have pushed down interest rates for their nations, in an attempt to control the debt of their respective governments, as all of the governments borrowed more and more money to support their economies during the pandemic.The ECB and the BOJ have pushed their yields below the once-unthinkable line of zero. The Fed may also be motivated into negative interest rates if the Democrats win the upcoming US elections.