Why has the relationship between inflation and unemployment reversed in recent times? (Phillips curve) -
1. 1980s vs 2017 - Expansion in govt and consumer credit, economic boom, demographics
2. unemployment manipulation/ part time, participation rate 4pts lower 63 vs 67.
3. Servicing debt rather than consuming more goods/ services - wage v debt differential
We continue to monitor EURO/USD for a breakout. As you can see price has not been able to settle above the key resistance line (Blue) however price has advanced in an upward direction finding support on the lower trend line (green).
We feel a catalyst is required for price to breakout and we have 3 opportunities this week for price to breakout. ...