Rates lower for longer

7 October, 2015

In the absence of any meaningful economic data today investors are looking ahead to tomorrow’s Bank of England interest rate policy and FOMC minutes. For some time now the markets have been of the thinking that the impending monetary tightening cycles from the Federal Reserve and BOE will move neatly one after the other, with the Fed hiking in either September or December this year and then the BOE soon after that. This consensus has now been thrown out the window following the recent poor run of economic data as investors accept that interest rates are set to stay lower for longer. For many this is hard to fathom considering that a commencement of the monetary tightening cycle from one of either the Fed or the BOE has been much anticipated throughout this year. We are now seeing plenty of evidence to suggest that for both these central banks this tightening cycle isn’t set to start until well into 2016 and who moves first is open to debate. Tomorrow’s MPC voting and BOE minutes will be of great interest and an absence of any more hawks joining Ian McCafferty in his calls for a rate hike could put further downward pressure on sterling.

Today does see the release of UK industrial and manufacturing production where both are set to rise 0.3%. Considering the shock figure from Germany already this morning investors shouldn’t be surprised if they see a worse than expected number.


Source link  
USD Bounces From Month Low

Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion...

Dollar index hit a new low

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211...

USD Hit Post Election Low

To date the dollar index has almost given up all of the post presidential election rally...


BoE Expected to Keep Rates Steady

ECB Governor Draghi will make a speech in the Dutch Parliament at 12:00 BST today. It will be Draghi first speech...

Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

Corporate Earnings Lift US Stocks

Last week the US President Trump stated on twitter...


Market Concerns Eased

The first-round voting of the French presidential election was revealed on Sunday night...

Dollar Plunged on Trump Second Statement

The dollar index fell to a 2-week low of 99.91 in the early hours...

Markets Eye on the First Trump-Xi Meeting

US President Trump and Chinese president Xi Jinping, are scheduled to meet today at Trump’s Mar-a-Lago resort in Florida...

  


Share: