Central Bank speakers start a quiet week

13 February, 2018

Swiss Consumer Price Index (YoY) (Jan) was 0.7% v an expected 0.8%, from a previous 0.8%. Consumer Price Index (MoM) (Dec) was as expected at -0.1% from 0.0% previously. USDCHFfell from 0.93976 to 0.93664 after the data was made public.

UK MPC Member Vlieghe spoke at the Resolution Foundation in London. Some of the comments made were: If there is less credit headwind to the UK economy, then we may be ready for higher rates. There is increasing evidence that tighter labour markets are beginning to have an upwards effect on wages. The rise in the UK debt burden is not sustainable if it continues for many years. Households are leveraging up when there is not much slack in the economy. MPC should take an interest in that matter. Vlieghe says that the central bank is doing macro-prudential tightening but it is also appropriate to raise rates. Nothing has happened to challenge the BOE’s view about raising rates before reversing QE. The BOE has discovered it can cut rates lower than 0.5% since it gave guidance of a 2% threshold for reversing QE. The US Fed’s experience of reversing QE will also influence the level of rates at which BOE starts to reverse QE. The UK rate outlook depends on the uncertain economic outlook over next few years and the neutral UK interest rate is also very uncertain. GBPUSD made a low of 1.38319 before moving higher to 1.38738 during the speech.

UK MPC Member McCafferty spoke on the economic outlook and monetary policy. Some of the comments made were: It is quite likely that rates will move up slightly faster. The market is expecting three hikes over the next three years. There is a need for hikes because growth is strong and inflation is above target. Rates will have to go up gradually and the BOE will be watching data and making decisions on a month by month basis. The desire is to get rates to a place where they could be cut if it became necessary. EURGBP moved lower from 0.88887 to 0.88739 during the speech.

US Monthly Budget Statement (Jan) was $49.0B v an expected $51.0B, from a previous reading of $-23.0B.

Australian RBA Assistant Governor Ellis spoke about the economic outlook at the Australian Business Economists Forecasting Conference, in Sydney. Some of the comments made were: weak income growth very risky given high debt levels. The RBA is a bit more confident about the pickup in wages and inflation. Progress is, however, expected to be gradual and to lag other advanced economies. Central estimate is that NAIRU in Australia is still around 5 pct. Risk unemployment could fall further before stoking wages. No immediate pick up in wage growth is expected but a gradual rise is expected over time. Recent enterprise agreements to weigh on wage growth for a while. Retail competition to work against a rise in inflation and household income growth has been particularly weak in Australia. Households could curb spending if weak income growth becomes seen as permanent.


Source link  
Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...

Rebound in Asian markets intensifies

On Friday morning, the demand for risks on the Asian bourses continues to recover. MSCI for Asia ex Japan is adding more than 1.2% this morning, having...


Reasons to rebound EM indices

Asian markets are adding after reaching 14-month lows the day before. Positive markets are supported by the reports about China's invitation to trade...

Strong data supports U.S. markets

Stocks of the Emerging Markets remain under pressure on Wednesday morning, with positive sentiments prevailing in American markets following...

Pound press dollar on news about Brexit

Michael Barnier, the EU's top negotiator on Brexit, called a reaching of the agreement on the deal within next 6-8 weeks realistic. This news supported...


Brent reversed from resistance level

Brent Crude Oil recently reversed down sharply from the major, multi-month resistance level 79.50 (which has reversed the price multiple times from the...

EM Markets sale-off spreading to DM

The current weakness on the developing countries financial markets is the longest since 2008. The similarities go further than that: as well as 10 years ago...

The price for trade uncertainty

The markets are cautiously on buy for American stocks, and the dollar adds on fears that trade conflicts are seriously stifling the business sentiment...


In the past 24 hours Bitcoin has gained 2.23% and reached $6556.00400768. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.0963% and is now at $1.1682. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 4.59% and is now at $224.117649679. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM79%
10AvaTradeAvaTrade77%
  


Share: