Post Tagged with: "Mark Carney"

All eyes on Janet Yellen’s testimony

Today’s focus will be with Fed Chair Yellen’s testimony to the Senate Banking Committee in Washington. This happens every six months and is a key element of the Fed’s accountability to the US Administration. The dollar will be looking closely for further clarification of when the Fed may start tightening rates, having moved their forward guidance language from referencing “considerable period” to them being “patient”. But the Fed has struggled with such guidance and Yellen in particular, namely at one of her first press conferences back in March of last year, when she was too specific with regards to timing and markets sold off. The bottom line is that forward guidance has had its day and the Fed will be best placed to keep something back to allow markets to make their own judgement. The other factor is that most of the data has come in weaker than expected (bar labour market) in recent weeks and markets will also be looking for any changes in emphasis on this front. The dollar will be volatile and for choice, lower on the back of a lack of clarity on the timing of the first rate move. Also note that Bank of England Governor Mark Carney speaks this morning in from of Parliamentary committee. Sterling continues to perform well, the strongest performer on the majors so far this week and finds itself around the 1.5450 area at the European open.

Naturally, the story is not over for Greece. The measures they have put together over the past few days will be put in front of Eurozone Finance Ministers today. Details of the reform measures are starting to filter through and seem on the vague side, so it’s appears that it is not going to be plain sailing. If there is no agreement, then we’re likely to see further wobbles in the single currency and especially in Greek bonds, because time is clearly running out. Even if accepted, this only funds Greece for the coming for months, so further negotiations are going to start once again.

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Carney not worried about inflation, exchange rate – GBP/USD shoots 100 pips up

Carney not worried about inflation, exchange rate – GBP/USD shoots 100 pips up

The inflation report is apparently pound positive. GBP/USD jumped from 1.5235 to nearly 1.53, but if beginning to slide back. Update: the pair enjoys a second wind of gains, crossing 1.5320. This is already turning into a gain of over 100 pips. Mark Carney and his colleagues seem bullish on the UK economy and see [&hellip

Forex Weekly Outlook February 9-13

Forex Weekly Outlook February 9-13

The greenback was on the back foot throughout most of the first week of February, before staging a partial comeback. We now have Australian employment data, the BOE Inflation Report, US retail sales, consumer sentiment as the major market movers for this week. Here is an outlook on the highlights coming our way. After some underwhelming figures [&hellip

Forex Weekly Outlook Dec.15-19

Forex Weekly Outlook Dec.15-19

The US dollar retraced some of the previous gains but managed to retrace the retracement as well. Japan’s Lower House Elections, UK inflation and employment data and the most important event: the last Fed decision for the year are the main highlights for this week. Follow along as we explore the Forex market movers. The US consumer [&hellip

Forex Weekly Outlook November 10-14

Forex Weekly Outlook November 10-14

The US dollar continued raging across the board, reaching multi-year highs against many currencies. Are we set for another correction like in October or can we expect another advance of the greenback. The UK inflation report, retail sales and consumer confidence in the US and German GDP figures are the major market movers for this week. Here [&hellip

MPC Meeting Minutes vote remains 7:2, worries expressed – GBP/USD extends slide

MPC Meeting Minutes vote remains 7:2, worries expressed – GBP/USD extends slide

As expected, the UK MPC continued voting 7:2 against a rate hike, with the same two dissenters. The majority see the euro-area as a risk to the UK recovery. They are concerned by weak wage growth If this is the sentiment before the recent weak data, it is unclear if we will still have two members [&hellip

BOE leaves rates unchanged – GBP/USD stays high

BOE leaves rates unchanged – GBP/USD stays high

No surprises from the UK, not yet. The BOE left the interest rates unchanged at the rock bottom level of 0.50% seen since 2009. GBP/USD is ticking lower, but from high levels in the initial response. Update: cable is not falling fast. The real show is the release of the meeting minutes. The Monetary Policy [&hellip

This week in the markets: Euro suffers following poor data and comments from Draghi

This week in the markets: Euro suffers following poor data and comments from Draghi

Last week began rather quietly for the pound, though there was at least a bit more confidence in the currency again following the ‘no’ vote on Scottish independence last week. Volatility picked up as the week went on. It slipped early on Wednesday to a low of 1.6302, after UK public finance data showed a [&hellip

Carney signals rate hike only in the spring – GBP/USD loses gains

Carney signals rate hike only in the spring – GBP/USD loses gains

Carney only temporarily lifted the pound. While he began by saying that rates are set to rise, he followed up with a timing of this hike, and it seems to be further away than earlier perceived. At least Carney is giving us some forward guidance. GBP/USD is back down to 1.6110 after trading above 1.6150 when [&hellip

Carney temporarily pushed the pound higher with hawkish statements ahead of dovish ones

Carney temporarily pushed the pound higher with hawkish statements ahead of dovish ones

GBP/USD is on the rise following the release of BOE governor Mark Carney’s speech. Carney says that the time to begin raising rates is getting closer. However, he repeats the previous stance that rate rises will be slow and gradual. These are hawkish words. However, it’s important to remember that Carney made comments in both directions [&hellip