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Official FxPro Forex Broker Blog. Professional daily Forex market reviews and analysis. Economic calendar.
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18 августа, 09:45

US Political Tensions Return

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US Political tensions took center stage on Wednesday. USD lost ground following President Trump’s decision to disband two advisory councils, staffed by CEOs, and after he slammed Republican members of Congress who were critical of his recent remarks blaming weekend violence in Virginia on anti-racism activists as well as white nationalists. Eight Chief Executives, and other industry leaders, on the Presidents Manufacturing and Jobs Initiative groups had stepped down before Trump announced the disbanding of both councils. Minutes from July’s Federal Open Market Committee’s meeting revealed a split in opinion between Federal Reserve members with regards to the timing of the next interest rate hike. One side has concerns over what would happen if the central bank delayed its hiking strategy, while the other group warned about the low-inflation environment. Recent data showed the number of Americans filing for unemployment benefits fell to a 6-month low last week. Initial claims for state unemployment benefits dropped to a seasonally-adjusted 232K versus 240K expected for the week that ended August 12. US factory production dropped 0.1% last month. Overall US industrial production rose 0.2% versus expectations of 0.3%. EURUSD was little changed overnight and currently trades around 1.1730 USDJPY traded 0.25% lower in early trading touching a low of 109.247, it is currently trading around 109.28 GBPUSD made slight gains in early trading to currently trade around 1.2885 Gold is little changed overnight currently trading around $1,288 WTI gained 0.3% in early trading and currently trades around $47.25pb At 13:30 BST Statistics Canada will release Consumer Price Index for July month-on-month, year-on-year and Core month-on-month along with Bank of Canada CPI Core (MoM) & (YoY) for July. Forecasts are calling for unchanged to a marginal increase – all keeping in line with the Bank of Canada’s monetary policy. At 15:15 BST FOMC Member, and President of the Dallas Federal Reserve, Robert Kaplan is scheduled to participate in a moderated Q&A session at the Dallas County Community College District Conference Day 2017 in Dallas, with audience Q&A.

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17 августа, 10:24

USD Bears Return

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USD bears returned to the market as the tensions between North Korea and the US have greatly “cooled” this week. North Korean media reported that North Korea Leader Kim had delayed his decision to fire missiles towards Guam while he waited to see what the US did next. On Wednesday, President Trump praised North Korean leader Kim Jong Un for a “wise” decision. Minutes, released on Wednesday, from the Fed’s July meeting showed the central bank growing warier about recent weak inflation data, with some policymakers wanting proof of inflation moving towards the Fed’s 2% rate before deciding on the next rate hike. In addition, the minutes also revealed that the uncertainty surrounding the fiscal, healthcare, and trade policies was holding back business investments – which will hamper domestic growth. The CME FedWatch tool is indicating that the markets are pricing a 46.8% probability of a 0.25% rate hike in December. GBP gained following data that revealed UK wages rose faster than expected in the three months to June, and the unemployment rate fell to 4.4% – its lowest since 1975. EURUSD rose overnight to a high of 1.17896 following data that revealed Eurozone Q2 was revised to 2.2% (prev. 2.1%). EURUSD is currently trading around 1.1770 USDJPY declined 0.4% overnight hitting a low of 109.664. USDJPY is currently trading around 109.95 GBPUSD trades in a relatively narrow range of less than 30 pips in early trading. Currently GBPUSD is trading around 1.2890 Gold climbed 0.4% to $1,289.35 adding to Wednesday’s 0.9% increase. Gold is currently trading around $1,288 WTI edged higher but remains close to a near 4 week low touched earlier this week as US output hit a 2-year high offset by the 7th weekly drawdown in stockpiles. WTI is currently trading around $46.95pb At 09:30 BST UK National Statistics will release Retail Sales for July. Forecasts are for a lower reading than previous across all time frames – notably Month-on-month expected at 0.2% (prev. 0.6%) and Year-on-year expected 1.4% (prev. 2.9%) At 10:00 BST Eurostat will release CPI for Eurozone in July. CPI (YoY) & Core (YoY) is expected to be unchanged at 1.3% & 1.2% respectively. Any major deviation will impact ECB monetary policy with regards to future interest rate hikes. At 12:30 BST the ECB Monetary Policy Meeting Accounts will be released. Markets will be looking at the rationale behind monetary policy decisions and economic growth prospects. At 14:15 BST the Board of Governors of the Federal Reserve release US Industrial Production for July. Consensus calls for a decline to 0.3% from the previous reading of 0.4%. At 17:30 BST Federal Reserve Bank of Dallas President Robert Kaplan participates in a moderated question-and-answer session at the “Dialogue with the Dallas Fed” event hosted by the Lubbock, Texas, Chamber of Commerce.

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16 августа, 10:24

Markets Welcome Risk-On Sentiment

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With tensions abating between the US and North Korea USD bulls returned. A North Korean media report indicated that dictator Kim Jong Un had decided not to launch a threatened missile attack on Guam. In addition, South Korean President Moon Jae-in vowed to avoid a conflict at any cost. With a move away from safe havens both Gold and JPY suffered losses on the day. USD also appreciated against GBP, pushing GBPUSD to a 5-week low, after UK inflation held steady in July and raised questions as to whether the Bank of England will be able to raise rates again this year. German GDP, whilst growing, was below forecast, especially for (YoY) Q2 of 0.8% against the forecast 1.9%, that resulted in EUR selling. US data showed Retail sales improving in July, the strongest showing for 7 months, which will help the FOMC tighten monetary policy and give them the option to raise rates once more in 2017. Markets will be focusing on the latest minutes from the last FOMC meeting that are to be released later today. EURUSD fell to its lowest level in 3 weeks at 1.16868 before rebounding in late trading. EURUSD is currently trading around 1.17×25 USDJPY improved over 1% on the day to reach a high of 110.845, its highest for 3 weeks. Currently USDJPY is trading around 110.75 GBPUSD lost 1% on Tuesday touching a low of 1.28458 a level last seen back in June. Currently GBPUSD is trading around 1.2855 Gold declined nearly 1% on Tuesday to reach a low of $1,267.25. Currently Gold is trading around $1,272 WTI reached a low not seen for 3 weeks of $47.14pb. Currently WTI is trading around $47.90pb At 10:00 BST Eurostat will release Eurozone Gross Domestic Product (QoQ) & (YoY) for Q2. Forecasts call for an unchanged number of 0.6% & 2.1% respectively. GDP has been consistently rising, albeit very slowly, since 2014. Markets are expecting this trend to continue and will be EUR averse if the release is below expectations. At 15:30 BST the US EIA Crude Oil stockpiles report for the week ending August 11th will be released. Another drawdown of -3.176M is expected which is a reduction in the previous larger drawdown of -6.451M. As always, whatever the release the markets always expect this release to have a significant impact on Oil prices. Closing out the day at 19:00 BST will be the FOMC Minutes release. Markets will be dissecting the release for any indications to changes in monetary policy and the resulting tone that will signal the likelihood of further interest rate hikes.

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15 августа, 10:04

Risk Appetite Returns

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North Korea’s official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam. President Trump did not respond to this latest comment but Defense Secretary Mattis warned that the US Military is ready to intercept any missiles fired by North Korea. This latest “war of words” relieved market concerns with a move away from safe havens and a degree of risk-on sentiment. To add to USD demand was the recent comments made by New York Federal Reserve President Dudley who, on Monday, suggested that if economic data holds up then it was not unreasonable to think that the FOMC would begin trimming its $4.2 trillion balance sheet next month and hiking interest rates by the years’ end. In the early hours of Tuesday morning the minutes from the last Reserve bank of Australia policy meeting put the focus back on household debt. The RBA, in keeping to its monetary policy, commented for the “need to balance the risks associated with high household debt in a low-inflation environment”. EURUSD gave up recent gains as USD demand increased. Overnight EURUSD has traded as low as 1.1768 and currently trades around 1.1780. USDJPY has gained over 0.7% overnight, reaching a current high of 110.42, as demand for safe haven JPY has diminished. Currently USDJPY is trading at the daily high. GBPUSD is generally flat from last nights close. Currently GBPUSD is trading around 1.2965. Gold declined 0.5% overnight, following comments from Kim Jong Un, to trade as low as $1,272.97. Currently Gold is trading around $1,275. WTI fell on Monday as fears of falling oil demand in China overshadowed news that Libya’s crude supply was disrupted. WTI added 0.2% overnight to currently trade around $47.75pb. A plethora of US economic data will help give some indication as to whether H2 GDP will outperform H1. July retail sales are expected to rise from June, while housing starts and industrial production may be muted. At 09:30 BST UK National Statistics will release Consumer Price Index (YoY) for July. Market consensus is calling for 2.7% from the previous reading of 2.6%. Inflationary pressure will add more credibility to a Bank of England rate hike later this year. At 13:30 BST US Census Bureau will release Retail Sales (MoM) for July. Consensus is calling for a robust increase to 0.4% from the previous poor reading of -0.2%. An increase will help the FOMC adhere to their plans to have one more rate hike this year.

14 августа, 10:59

Tensions Cool Down

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A degree of risk-on sentiment returned to the markets, as the tensions between the US and North Korea appear to have “cooled” down. On Monday Japan’s Q2 growth topped estimates, showing higher domestic demand. Japan’s growth accelerated to a 4.0% annualized rate and, whilst inflation stays weak, it is not likely that the Bank of Japan will reign in its massive stimulus program any time soon. China’s economy posted its worst showing this year as curbs on property, excess borrowing and industrial overcapacity began to take hold. Chinese Factory output increased 6.4% from a year earlier, below the 7.1% forecast and against 7.6% in June. Retail sales slowed to 10.4 % from 11% in June. In separate Sunday talk shows CIA Director Pompeo and National Security Advisor McMaster both commented that there was no indication that war will break out. However, markets will be on guard for any rhetoric from Trump or Kim Jong-un. Last Friday’s data showed US CPI edged up just 0.1% in July after it was unchanged in June. Many market participants had forecast CPI rising 0.2% in July. With weak inflationary pressure the FOMC will struggle to justify any further rate hikes, which will keep USD under pressure. This week, the markets will be focusing on US retail sales (Tuesday) and FOMC minutes (Wednesday). EURUSD improved slightly over the weekend to currently trade around 1.1830. USDJPY showed little reaction to Q2 gross domestic product data, which revealed that the economy expanded for a 6th straight quarter led by private consumption and capital expenditure. Currently, USDJPY is trading around 109.50. GBPUSD is little changed in early trading and currently trades around 1.3015. Gold is down 0.25% in early trading, at around $1287.50, following last week’s 2.4% gain on the week. WTI, down 1.5% last week, is currently flat on the day, trading around $48.90pb. A relatively “light” start to the week for economic data releases with the markets likely to focus on: At 10:00 BST, Eurostat will release Eurozone Industrial Production Month-on-Month and Year-on-Year for June. The MoM consensus call for a disappointing consensus of -0.5% (prev. 1.3%) with the YoY consensus of 2.8% (prev. 4.0%). Such poor forecasts will underscore poor inflationary conditions, making any near-term hike in interest rates unlikely. The markets will also be concerned will further USD weakening in the current risk averse atmosphere.

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11 августа, 11:29

FxPro Announces Launch of New Spread Betting Platform – FxPro Edge

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11 августа, 09:17

Geopolitical Tensions = Risk Aversion

On Thursday, US Producer Prices unexpectedly fell to 1.9% in July (forecast was 2.2%), recording its biggest drop in nearly a year and suggesting further constraints in inflation that will likely delay a Federal Reserve interest rate increase. Additional poor data from the US was released by the US Department of Labor for Initial Jobless Claims for the week ending August 4th. Markets had expected a decline from the previous release of 241K but were surprised with an increase to 244K. A tightening labor market and languid inflation puts the FOMC in a difficult position with their plans to tighten economic policy. However, Federal Reserve Bank of New York President Dudley suggested on Thursday that the central bank was on track to raise interest rates once more, as he expects sluggish inflation to rise over the next several months. With poor US economic data, and the rising tensions between the US & North Korea, the markets went into risk aversion “mode”, selling USD and buying safe havens. On Thursday, OPEC raised its outlook for oil demand in 2018 and cut its forecasts for output from rivals next year, although another increase in OPEC’s production suggested the market will stay in surplus regardless of the efforts to limit supply. Japanese markets are closed for the Mountain Day public holiday on Friday so early trading conditions are reflecting less “risk-appetite” than normal. EURUSD traded down to 1.17038 in early Thursday trading, before rebounding higher. EURUSD is currently trading around 1.1770. USDJPY declined over 0.7% on Thursday, reaching a low of 109.205 as the markets bought JPY in typical “safe-haven” conditions. JPY buying continued overnight with USDJPY hitting a low of 108.90.3 – the lowest level seen in 2-months. USDJPY is currently trading around today’s lows at 108.98. GBPUSD traded to a 3-week low, as an assortment of UK output and trade data did little to improve investor interest for an economy struggling to meet Bank of England targets. GBPUSD traded to a low of 1.29514, before retracing higher after UK Industrial Production data (MoM) came in at 0.5% in June, beating the forecast of 0.1%. Currently, GBPUSD is trading around 1.2990. Gold climbed over 0.5% on Thursday, fueled by the tensions between the US and North Korea. Gold reached a high of $1,288.91 overnight – its highest level in 8 weeks. Currently, Gold is trading around $1,285. WTI declined by nearly 2% on Thursday, as threats of further OPEC cuts are not counteracting the global glut, resulting in WTI hitting a low of $48.65. The trend continued overnight, with WTI losing another 0.9% – hitting a low of $48.20 in early trading. WTI is currently trading around $48.30. There are several data releases out of Europe early on, but the markets will be focusing on US data releases later in the day: At 13:30 BST, the US Department of Labor Statistics will release the much-anticipated Consumer Price Index Month-on-Month and Year-on-Year for July. Recent CPI releases have been tepid in regards to …

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10 августа, 10:02

US-Korean Tensions Rattle Markets

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Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned, as President Trump said, in response to a Washington Post report on North Korea’s nuclear capabilities, that “North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen”. North Korea has claimed it is examining an operational plan for firing a ballistic missile toward Guam. With concern mounting of a potential conflict the markets turned to a risk off sentiment with Gold, JPY and CHF gaining against USD, as investors entered into holding safe-haven assets. More positive economic data came out from the US with Unit Labour costs lower and Nonfarm Productivity increasing in Q2. Initially the markets reacted with another round of USD buying, before giving back gains. With weakening oil prices, and doubts about OPEC’s ability to reduce production, the US EIA reported another surprising drawdown in US oil inventories of 6.5 million barrels for the week to August 4 – helping push Oil higher on the day. EURUSD, following positive US data, traded down to 1.16887 before trading higher to 1.17634. Currently, EURUSD is trading around 1.1740. As risk-off trades persists, USDJPY initially traded down to 109.559 on Wednesday, its lowest level in 2 months, before rebounding higher to 110.356. USDJPY is currently trading around 110.00. GBPUSD continued to trade around 1.30 in relatively lackluster trading on Wednesday. Currently, GBPUSD is trading around 1.2985. Risk trends will dominate USDCHF, which is currently trading around 0.9660. Gold traded 1% higher to reach $1,276.06 on the day. Gold has continued pushing higher overnight and is currently trading around $1,279. A further drop in US crude stocks raised hopes that an OPEC-led effort to wipe out a three-year, price-sapping supply glut is working, with WTI gaining 0.5% on Wednesday to trade as high as $49.75pb. WTI has continued trading higher overnight and is currently trading around $49.90. At 09:30 BST, UK National Statistics will release a plethora of data for June: Manufacturing Production (MoM) & (YoY), Industrial Production (YoY) & (MoM), Goods Trade Balance, Total Trade Balance and non-EU Trade Balance. Recent indications are calling for a slight improvement in Industrial production and a reduction in the UK’s Trade Balance. Data significantly worse will see GBP come under downward pressure, conversely a release much better than expectations is likely to see GBP in demand. At 13:30 BST the US Bureau of Labor statistics will release PPI data, Initial Jobless Claims and Continuing Jobless Claims. Expectations are calling for an improvement in all PPI data, with Jobless Claims holding steady at 240K. Positive data will help bolster USD and underscore US economic growth, which may help the Fed in hiking rates one more time this year. Poor data will see USD come under selling pressure. At 15:00, FOMC Member & Federal Reserve Bank of New York President Dudley will deliver opening remarks and join …

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09 августа, 09:31

USD Bulls Retreat with Trumps “Fire & Fury” Threat

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The latest Chinese economic data points to steady global demand. The world’s second-largest economy trade surplus grew for a 5th consecutive month in July, as demand for Chinese goods held up in the face of growing tensions with the US. Another set of unexpectedly positive data out of the US saw USD gain against many of its peers on Tuesday. The US Bureau of Labor Statistics JOLTS Job Openings (Jun) release of 6.163 million was 388K better than the expected release of 5.775 million, resulting in a record number of job openings in the US. Further USD buying resulted from the IBD/TIPP Economic Optimism (MoM) (Aug) that was released with a 52.2 reading besting the consensus of 50.6, indicating US consumer’s improved optimism towards current economic conditions. Typically, these US indicators are not “market impactful” however, with somewhat lackluster markets of late, any news, whether positive or negative, is having an exaggerated effect on the markets. The latest tensions between the US and North Korea caused President Trump to react with the comment that further threats from North Korea would be met with “Fire & Fury”. The markets reacted with a slight risk off sentiment with typical safe havens, such as JPY and Gold, in demand. EURUSD gave up 0.5% on Tuesday, hitting a low of 1.17147 on the back of positive US data. Currently, EURUSD is trading around 1.1740. USDJPY was subdued on Tuesday, trading in a sub 60 pip range. Currently, USDJPY is trading around 110.00 after reaching a 2-month low in early trading of 109.738, following Trumps reaction to North Korea. GBPUSD, after holding above 1.30, broke lower to 1.29521 on Tuesday due to overall USD bullishness. GBPUSD is currently trading around 1.2990. Gold dropped 0.4% on Tuesday to trade as low as $1,251.41, before rebounding higher overnight as markets bought “safe havens”. Gold is currently trading around $1,265. WTI edged 0.35% lower on Tuesday, as Saudi Arabia said it would pressure other OPEC members to improve their compliance rate, but there is still the question of Libya and Nigeria, both exempt from the cuts, which are ramping up their oil output at a respectable rate. WTI is currently trading around $49.18pb. At 11:00 BST the UK Treasury Committee will hold its Inflation Report Hearings. At 13:30, the US Bureau of Labor Statistics will release Unit Labor Costs and Nonfarm Productivity (Q2). A mixed result is expected with Unit Labor Costs expected to be 1.2% (prev. 2.2%) and Nonfarm Productivity expected at 0.7% (prev. 0.0%). At 15:30 BST, EIA Crude Oil Stocks change (Aug 4) will be released, with a consensus drawdown of -2.800 Million. With successive recent drawdowns, the market will be evaluating the release in respect to overall US supply/demand. At 22:00 BST, The Reserve Bank of New Zealand will publish its Interest Rate decision and its Monetary Policy statement. Consensus is for the RBNZ to hold interest rates at 1.75%, but markets will be wary for any change in the “tone” of monetary policy.

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08 августа, 09:08

Markets Look to OPEC

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As OPEC began its 2-day meeting in Abu Dhabi on Monday, to align its members to adherence to output reductions, data from S & P Platts revealed that Libya and Nigeria pushed OPEC’s crude oil output in July to the highest level this year at 32.82 million barrels a day. Per Platts; Libya and Nigeria (both exempt from the cuts agreed last year) oil production went up 210K barrels per day in July, 210K bpd and 1.81 million bpd respectively. If the data from Platts is correct then OPEC’s output in July was 920K bpd above the ceiling of 31.9 million bpd OPEC set last year. It is evident that compliance with the cuts is not being made, thus leading to an oversupply that has kept WTI below $50. The markets will be waiting to see if OPEC makes further demands of its members to reduce production and, more importantly, that its members abide by such demands. In currencies, USD edged lower on Monday, giving back some of its gains from Friday, as the markets became cautious ahead of inflation data this week that may signal a reversal in USD weakness. Finally, the latest economic data out of China pointed to steady global demand. While exports missed market estimates, rising 11.2% in July in yuan terms, demand for Chinese goods held up in the face of escalating tensions with the US. EURUSD trading was relatively light on Monday, trading in a narrow 43.7 pip range as it made some gains from Fridays sell-off. Currently, EURUSD is trading around 1.1805. USDJPY was also trading in a narrow range of less than 28 pips on Monday. Currently, USDJPY is trading around 110.60. GBPUSD appears to have found some support just above 1.30 on Monday in relatively light trading. Currently, GBPUSD is trading around 1.3045. Gold edged lower on Monday, failing to gain support from a weaker USD, as the markets digested sharp losses in the previous session and worried about further U.S. rate hikes. Currently, Gold is trading around $1,260.00. WTI lost 1.2% on the day, as Oil failed to recover from recent USD strength. WTI currently trades around $49.40pb. Economic data releases on Tuesday are, somewhat, second tier – with little expected impact on the markets. Day 2 of the OPEC meeting in Abu Dhabi ends. The main focus being members’ compliance to the output pact the cartel inked with 10 other oil suppliers, including Russia, in late 2016. The deal so far has not produced meaningful effects to reduce global output or inventories.

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07 августа, 09:22

US Data Surprises the Markets

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On Friday, the US Department of Labour released Nonfarm Payrolls for July of 209K that beat the markets’ expectation of 183K. Additionally, US Unemployment improved from 4.4% to 4.3% and average hourly earnings crept up by 0.3%, from 0.2% the year before, underlining a relatively strong labour market. Such a healthy set of data, which helped USD recover from 15-month lows against many currencies on Friday, should bolster labour market resiliency and, the slight increase in hourly earnings, may suggest that there is momentum in the economy to generate some inflation. The data may further help support the Federal Reserve’s plans to hike rates before year end although any inflationary pressure is likely to be very small. Markets also remain cautious as the political tension in the US is likely to increase with the news that President Trump’s “inner circle” is in focus, as a grand jury has been convened in Washington DC that is investigating the June 2016 meeting between Donald Trump Jr and Russian Nationals – which may further hamper USD strength. Following the data release, USD made 1% gains against EUR, GBP, JPY & Gold attracting broad short USD covering. EURUSD backed off from highs on Friday, dropping over 175 pips before retracing higher to currently trade around 1.1790. USDJPY remains in a relatively narrow trading range, currently trading around 110.75, after dropping to a 7-week low last week below 110. GBPUSD gave up some of its recent gains on Friday, dropping over 100 pips following US employment data. Currently, GBPUSD is trading around 1.3055. Gold suffered with USD strength, dropping over $10 on Friday. Gold is currently trading around $1,258. WTI is still trading near to $50 pb, as representatives of OPEC meet for a 2-day gathering on Monday in Abu Dhabi to discuss why some of them are falling behind in pledges to reduce production. WTI is currently trading around $49.52. At 08:30 BST, the markets get the latest look at the UK housing market, with the release of the Halifax House Price Index for July. Market consensus suggests a 0.2% rise in the month on month figure, bettering the previous reading of -0.1%, which is likely to be regarded as inflationary. At 16:45 BST, Federal Reserve Bank of St. Louis President James Bullard gives a presentation on the U.S. economy and monetary policy in Nashville. At 18:25 BST, Minneapolis Federal Reserve President Kaskari (FOMC voting member) is scheduled to speak at a moderated question and answer session in South Dakota.

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04 августа, 09:23

Bank of England Lowers UK Growth Forecast

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The Bank of England kept rates at their record low on Thursday, following their latest Monetary Policy Committee meeting. However, the BoE cut forecasts for growth and wages, as Brexit weighs on the UK economy. The BoE expects the UK economy to grow by 1.7% this year (in May the forecast was 1.9%), 1.6% (from 1.7% forecast in May) in 2018 and 1.8% in 2019. This pessimistic outlook for the next 2 years has reduced market expectations of any imminent hike in UK rates. However, Bank of England Governor Carney suggested there is scope to potentially hike rates at least once next year. Following this grim outlook for the UK, GBP gave up recent gains against both USD & EUR. GBPUSD lost 1.56 cents falling from 1.3268 to 1.3112 on the day. EURGBP climbed from 0.89234 to a high, not seen since October of 2016, of 0.90483 on the day. In the US, reports are that Special Counsel Robert Mueller has issued grand jury subpoenas in his investigation of alleged Russian interference in the 2016 U.S. elections, adding to an already unsteady US political landscape. Market attention now turns to todays, always impactful, US Nonfarm Payroll and Unemployment data, with many hoping to see a sustained improvement in payrolls and a steady, or reducing, unemployment rate that may help improve the economic outlook for the US. EURUSD gained on the day, on the back of lackluster US PMI and Factory Orders, to trade up to 1.18926. Currently, EURUSD is trading around 1.1880. USDJPY, reacting to the latest US data, was 0.6% lower on the day to trade as low as 109.946. Currently, USDJPY is trading around 110.10. GBP suffered against USD & EUR, following a pessimistic economic outlook from the Bank of England, losing 0.7% on the day against USD and 0.8% against EUR. Currently, GBPUSD is trading around 1.3145 and EURGBP around 0.9040. Gold saw a modest gain of 0.25% on Thursday and currently trades around $1,269.50. Recent modest US inventory drawdowns kept demand relatively strong for Oil, although continued high production is impeding further gains. WTI is currently trading around $49.00pb. At 13:30 BST, the US Department of Labor releases Nonfarm Payrolls & the Unemployment Rate for July. June witnessed a significant rebound in NFP, with 222,000 new positions added, and unemployment remaining at 4.4%. This release is expected to be lower, at 183,000, which is still a strong enough figure to absorb new entrants into the labour market and potentially push the unemployment rate to 4.3%, from the previous release of 4.4%. While we can expect market volatility following this week’s release, many will be looking to see if hourly earnings are growing, as June saw 2.5% and July is expected to remain the same. Without an increase in hourly earnings the markets do not expect consumer spending to gather pace, which would likely fuel upward inflationary pressure and consequently provide the Federal Reserve with more grounds to hike rates before the end of the year. At …