4 August, 2016
Today could well see the most predictable move from the Bank of England, but also the most ineffective. A 25bp easing of policy seems assured after the strong hints given by Carney at the end of June and also in the minutes to the July MPC meeting. But that alone would probably disappoint. There is already talk of banks possibly charging depositors because banks are having such a tough time making money. So it seems likely that the Bank will add some additional measures, such as an expansion of the Funding for Lending scheme started in 2012 and take-up of which has been flagging of late. We could also see more conditional forward guidance, pinning the rate path more tightly to underlying economic conditions. To push sterling lower, the Bank will have to push hard on the policy measures, but also provide a bleak picture of the economy in their latest Inflation Report, which is published at the same time as the interest rate decision. In sum, it’s going to be the busiest day for years for those obsessed with the Bank of England and UK policy. Given the extent to which the wider market is short of sterling, there is a decent risk of a squeeze higher should the Bank of England disappoint on policy.
Elsewhere, the yen continues to push ahead, USDJPY briefly pushing below the 101.00 level during Asia trade, as the markets gives a pretty unanimous thumbs-down to the latest monetary and fiscal policy measures. Japan continues to illustrate what happens when a country reaches the limits of policy effectiveness, something the Bank of England should note today.
Expectations (Apr) are expected to be released with a prior reading of 16.7. This data has been weakening since a reading of 52.0 was recorded in...
NZDUSD bucked the trend overnight, as most other currencies managed to retrace some of their declines against the USD. The pair hit fresh...
US Fed Boston President Rosengren is due to deliver the keynote speech on the economic outlook, at the Greater Boston Chamber’s Economic Outlook Breakfast...
With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers...
Friday's session is expected to be volatile, with Non-Farm Payrolls (13:30 UK Time) ahead and President Trump’s proposal for an additional $100B...
The US and South Korea have reached agreement on a Trade deal that comes with the added bonus for South Korea of a permanent exemption from...
Over the weekend, the EU published a list of tariffs on US products in response to the US tariffs on Steel and Aluminium. The total value of EU tariffs...
Eurozone Consumer Price Index – Core (YoY) (Feb) will be released. The consensus points to an unchanged value of 1%. Consumer Price Index...
Yesterday, the US announced Tariffs on Steel and Aluminium, which prompted an outcry from various global leaders and an acceleration in the...
# | Broker | Review | |
---|---|---|---|
1 | ![]() | easyMarkets | 90% |
2 | ![]() | FXTM | 87% |
3 | ![]() | HYCM | 85% |
4 | ![]() | FxPro | 84% |
5 | ![]() | FIBO Group | 82% |
6 | ![]() | FXCM | 70% |
7 | ![]() | XM | 68% |
8 | ![]() | Fort Financial Services | 67% |
9 | ![]() | Alfa-Forex | 66% |
10 | ![]() | HotForex | 66% |