Two BOE members warn against early interest rate hikes

Two members of the Bank of England's Monetary Policy Committee have aired cautionary messages about the prospects of early interest rate rises. Catherine Mann warned that the markets have already tightened financial conditions and Silvana Tenreyro warned that any hike used to contain temporary inflation would be “self-defeating”.

Fed minutes don’t stop the markets selling USD

The minutes from the last Federal Reserve Open Market Committee meeting were released late yesterday. play all but confirmed The Fed will start reducing their bond-buying programme before the end of the year.

Poor Consumer sentiment weakens AUD

Interestingly, although yesterday's NAB business sentiment index delivered a solid rise, this morning's release of the Westpac consumer sentiment index was down 1.5%. It must be noted that this is a very volatile index but it stopped the Australian dollar in its tracks.

UK payroll at a record high in September

We start Tuesday with a very healthy UK jobs report. The ending of the furlough period And the reopening of the food and entertainment sector combine to create 207,000 jobs in the month to September. That bought the unemployment rate down to 4.5% in the three months to August.

Sterling boosted by BOE comments

Sydney has reopened after more than 3 months of lockdown. That ought to boost the Australian Dollar but sterling is having a very positive morning. More of that later. The Australian dollar did gain half a cent against the pound but there are very obviously GBP buyers at AUD 1.86 and that is supporting this pair at the moment.

US Dollar Index edged lower

On Thursday, the US Dollar Index edged lower as the upbeat market mood allowed investors to turn their attention to high-yield assets, such as stocks and commodity-linked currencies. The shared currency, however, remained at the bottom of the list.

More poor German data weakens the Euro

Eurozone retail sales were in positive territory last month but that particular dataset has a hint of the ‘fiddlers elbow’ about it, so no one paid any attention. This morning is German industrial production data showed a 4% drop in August.

RBNZ 1st rate hike in 7 years but NZD weaker

The Reserve Bank of New Zealand raised its base rate to 0.5% early this morning. Whilst the general market perception was that the RBNZ would make that move, there were also several commentators who thought they may delay due to the number of new covid cases in the country.

Australia posts largest trade surplus on record

China is still on holiday, so the overnight markets were a little less liquid than normal. However, there were some interesting and somewhat mixed data from Australia to keep things lively. The Reserve Bank of Australia left its base rate on hold at 0.1% and maintained its asset purchase rate at 4 billion Australian dollars a week, which they will do until February 2022.

Supply chain woes constraining growth

The ongoing impact of COVID-induced Asian factory shutdowns and the disruption caused by the container ship that blocked the Suez Canal plus a lack of HGV drivers have all combined to cause supply chain disruption right around the globe.

Solid improvements in Japan’s Tankan Survey

It was a holiday in China and Hong Kong today, so the overnight markets were a little quiet. China is closed for the coming week by the way. There was overnight news from Japan though.

Dollar steadies as Fed prepares to tighten money supply

Stagflation is not a word that gets bandied about often but it is right now. The global economy is struggling to gather momentum in its post covid recovery and the supply chain problems persist.
EU flags waving in front of European Parliament building in Brus

Central bankers aplenty today

After the Pound trickled lower towards the end of last week, we've seen stabilisation and perhaps a little recovery in the value of the pound this morning. The hoo-ha over the struggle to get abundant supplies of petrol and diesel to the pumps appears to have eased a little, although many stations are reporting a lack of fuel.

UK fuel pump prices highest in 8 years

After the Pound trickled lower towards the end of last week, we've seen stabilisation and perhaps a little recovery in the value of the pound this morning. The hoo-ha over the struggle to get abundant supplies of petrol and diesel to the pumps appears to have eased a little, although many stations are reporting a lack of fuel.

Sterling stabilises

After the Pound trickled lower towards the end of last week, we've seen stabilisation and perhaps a little recovery in the value of the pound this morning. The hoo-ha over the struggle to get abundant supplies of petrol and diesel to the pumps appears to have eased a little, although many stations are reporting a lack of fuel.

Bank of England leaves rates unchanged at 0.1%

Yesterday the Bank of England left rates unchanged at 0.1% and their bond-buying program remained at GBP 895 billion, both as expected. However, MPC member Saunders were joined by Ramsden as the two dissenters in favour of lowering the overall QE amount to GBP 860 billion.

USD dips overnight but quickly stabilised

The major focus from yesterday's trading was the Central Bank meeting in the US, The Federal Reserve. The initial reaction saw USD dip overnight but quickly stabilised. With the overall market reaction being positive but nothing unforeseen to move the currency markets dramatically in the short term.

Fed talks continue

This evening’s Fed policy update is the key market event today. Mixed economic data and uncertainties ahead argue for a largely wait-and-see approach by policymakers. The number one issue for the Fed will be the timing of any ‘tapering’ of its asset purchases.