Carney speaks in Parliament today
Mark Carney, New Governor of the Bank of England, will speak in British Parliament today to explain how monetary policy could improve the economy of the country.
To some degree this is the reason that we have seen GBP fall from its recent peaks. Mr Carney will effectively be seeking to convince his stakeholders that sustained low interest rates are the way forward.
Whilst fundamental economic theory implies that this should weaken GBP there is also substantial market support for the Governors strategy. As such the market believes low interest rates are a route to economic recovery which in turn will make the pound more attractive again.
Aside from this comparatively, routine news, the UK parliament's vote on Military action against Syria looms. Putting aside the moral implications of war, how would this affect GBP and the global currencies?
Typically war equals a flight to ‘safe haven’ currencies - this would see USD and JPY appreciate. However, depending on how Iran views any military action against Syria, the price of Oil could be impacted and this would have the opposite effect for Currencies whose industries are heavily oil (particularly imported oil) reliant.
Posted in Daily Market News on May 30 2014
Both Europe and the US were open yesterday but not a great deal to report on the economic front. Durable goods orders out of the US yesterday were disappointing. We have consumer confidence figures from the US out this afternoon around 3.00pm so we’ll be keeping an eye on what...VIEW FULL ARTICLE
Posted in Daily Market News on Aug 27 2013 by alex