Bank of England

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Asian Session – Pound steady ahead of BoE decision; Dollar edges higher as yen backtracks

Posted on August 4, 2016 at 8:11 am GMT

The pound held steady in a tight range on Thursday as investors await the Bank of England’s latest monetary policy decision later in the day. Most analysts are expecting a 0.25% cut in the Bank’s base rate to stimulate the UK economy following recent data pointing to the sharpest slowdown in growth since the financial crisis. There are also expectations that the Bank will announce other measures such as restarting its quantitative easing program or new ways to boost lending [..]

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Pound pressured by downwardly revised UK manufacturing PMI but Eurozone revised up

Posted on August 1, 2016 at 11:16 am GMT

The post-Brexit gloom appears to have had a bigger impact on the UK’s manufacturing sector than initially thought, according to data out today. The final reading of the Markit/CIPS manufacturing PMI was revised down from 49.1 in the one-off flash estimate to 48.2 in July – the lowest since February 2013. Expectations were for the final reading to remain unrevised and compares with a figure of 52.1 in June. This was the steepest deterioration in manufacturing activity since October 2012. [..]

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Week Ahead – Pressure on BoE to cut rates; PMI data and US NFP also in focus

Posted on July 29, 2016 at 2:45 pm GMT

The Bank of England meets next week in a highly anticipated meeting where the Bank is expected to cut rates for the first time since 2009. The Reserve Bank of Australia also meets and will likely ease policy too. The latest PMI survey data for the Eurozone, UK, US and China will also be watched as investors look for signs of any negative impact on growth from Brexit, while the July non-farm payrolls report out of the US will for [..]

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Asian Session – Dollar breaks above 107 yen; Kiwi pressured by RBNZ outlook

Posted on July 21, 2016 at 8:18 am GMT

Improved risk sentiment helped the dollar higher against the yen, while stimulus talk continued to pressure the Japanese currency on Thursday. The dollar broke above 107 yen for the first time in six weeks as Japan’s government said today it is planning a fiscal stimulus package worth 20 trillion yen. The figure is double the initial sum of 10 trillion yen that was previously mentioned. Most analysts are now with the view that the Bank of Japan will accompany the [..]

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European Session – Commodities sag as dollar extends gains; pound boosted by BoE survey

Posted on July 20, 2016 at 2:49 pm GMT

Commodity prices fell sharply in today’s European session as the US dollar continued its advance against most major currencies. Sentiment for the US currency appears to have turned bullish in recent days after a run of solid US data put the prospect of a Fed rate hike at some point in 2016 back on the table. The dollar rose to its highest since June 24 against the yen, reaching an intra-day high of 106.71 yen in late European session. This [..]

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Pound firms on jobless dip and a not-so-gloomy BoE survey

Posted on July 20, 2016 at 1:06 pm GMT

The British pound received a boost from a surprise dip in Britain’s unemployment rate in May, while a not-so-gloomy post-Brexit survey from the Bank of England further supported the currency. Stronger-than-expected jobless data helped sterling climb back above 1.31 dollars in European trading after dropping as low as 1.3064 dollars earlier in the day. A downward revision by the IMF to the UK’s growth forecasts had been weighing on the pound since yesterday, but there was a double dose of [..]

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European Session – Markets steady after failed Turkish coup; Pound firms on BoE’s Weale comments

Posted on July 18, 2016 at 2:58 pm GMT

Risk sentiment faltered slightly in European trading on Monday as the yen erased some of its earlier losses and most European equity indices turned negative. London’s FTSE 100 was one of the exceptions though as it was boosted by a merger deal. This helped London shares to stand 0.6% higher in late session. The mega offer by Japan’s Softbank to buy UK chipmaker ARM Holdings boosted the pound today, which hit a high of 1.3291 dollars earlier in the European [..]

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Gold, yen retreat from short-lived spike after failed Turkish coup attempt

Posted on July 18, 2016 at 12:31 pm GMT

A failed attempt by members of Turkey’s military on Friday to overthrow the Turkish government threatened to undo the improvement seen in risk sentiment over the week. With markets just starting to stabilize following the shock UK referendum result to leave the EU, a deadly terrorist attack in France and a coup attempt in Turkey risked causing another major market panic. However, market response to the Nice attack on Thursday was muted as investors saw it as an isolated event, [..]

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Week Ahead – ECB meeting eyed in post-Brexit world; busy UK calendar also in focus

Posted on July 15, 2016 at 2:12 pm GMT

The European Central Bank will hold its first monetary policy meeting next week since the UK’s decision to exit the European Union. The UK will stay under the spotlight though as key economic indicators for the British economy are released. The US and Japan will have a quieter seven days, with the latter closed on Monday for a national holiday. New Zealand CPI to pick-up slightly CPI data out of New Zealand will start the week on Monday. Inflation has [..]

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European Session – Pound jumps on BoE decision to hold; yen extends weakness

Posted on July 14, 2016 at 2:42 pm GMT

Major currency pairs were mostly subdued in the early part of the European session in the absence of key data releases and as traders awaited the key event of the day – the Bank of England policy announcement. After the BoE decision to keep policy unchanged, sterling strengthened against the dollar to reach a high of $1.3478 before easing to around $1.3280. It was still up on the day after steadily rising from the Asian session low of $1.3104. The [..]

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