Tag Archives: Bank of England
Another China easing rumour supports risk in Asia
At the start of the Asian session we heard more rumours about an imminent China easing, which set risk off on a solid footing for the session. The China chatter came from a Xinhua news agency piece “announcing” (according to an un-named central bank official) that the central bank was to increase reverse repo operations […]
FX Daily Strategist: Europe
Sentiment looks to be improving, but headwinds ahead Commodity currencies emerged as the top FX performers against the USD, with the CAD gaining nearly 1% against the USD after the BoC’s hawkish statement. Market sentiment held up following the successful Spanish T-bill auctions and the better-than-expected ZEW survey: Italian and Spanish 10yr yields closed 11 […]
China rate cut rumours circulate in Asia, raising risk appetite
Another session of consolidation for currencies during the Asian session with data releases second-tier. Just prior to the lunch break, rumours circulated of an imminent China rate cut which saw both the Shanghai Composite and risk in general better bid.
FX Daily Strategist: Europe
Bernanke drive the USD lower, equities higher – but Treasury market is less impressed While the German IFO and a more positive outlook for this week’s Eurogroup meeting may have laid the groundwork, it was a dovish take on the US labour market from the Fed Chairman that had the greatest effect yesterday.
BOE Minutes (Mar): BOE voted 7-2 for unchanged APF just as at the Feb meeting.
The immediate decision: After increasing the asset purchase facility (APF) by GBP 50bn to GBP 325bn at the February meeting and after the Inflation Report released in February, we did not expect any material changes in the monetary policy stance at the March meeting.
ECB and BOE meeting previews
European Central bank meeting The last couple of days have brought shock economic releases from Germany that may lead one to fear that the economy is ‘falling off a cliff’. Consider for example today’s dreadful December figures for exports (-4.3 percent) and imports (-3.9 percent), coupled with yesterday’s shock 2.9 percent decline in Industrial Production.
FX Ringside
Don’t blame BOE if sterling weakens In October the Bank of England (BOE) announced its decision to increase the Asset Purchase Facility (APF) by GBP 75bn to GBP 275bn for a period of four months ending only a few days ago.
ECB and Bank of England meeting previews
Monetary policy meetings will be held in the Bank of England and European Central Bank tomorrow and the latter at least has the potential to deliver important new developments. ECB My guess would be that the desire to cut rates again will not yet be irresistible for the Governing Council, as also indictaed by the […]
Market Analysis
The EUR was lower in Asian trade as investors were reluctant to buy the single currency despite modest gains Tuesday after successful European bond auctions, while many traders were cautious ahead of upcoming Italian and Spanish auctions and the European Central Bank’s policy-setting meeting Thursday.
UK M4 figures imply further Quantitative Easing
A quiet start to the year in the UK, both politically and economically, with no bold headlines screaming for attention, but hidden amongst a first week of relatively strong UK data, (all the three Purchasing Managers Indices – for Manufacturing, Construction and, most importantly, Services – came out slightly stronger than expected), were some ominous, […]
Bank Of England’s King – Warning Signs “Sufficiently Red”
Bank of England Governor Mervin King Thursday said that warning signs for the debt and banking crisis remain “sufficiently red,” although funding stress for euro-zone banks should be relieved in the months ahead.
Bank of England Minutes – go in short GBPUSD and stay short
The strong link between EURUSD and GBPUSD saw GBPUSD dragged higher overnight on reports in the Guardian which claimed that France and Germany had agreed to increase the size of the EFSF to EUR 2trn from EUR 440bn.