Overnight the Federal Reserve Interest rate remained at 0.5% causing the Dollar to fall on the announcement. The Fed commented that the Labor market had improved along with consumer spending remaining strong. Inflation was the key factor in why the rates were not hiked as Janet Yellen stated in that it was still below target and only 3 voted for an immediate rate hike. December has been targeted for a possible rate hike as the US election will deter any possible hike in November. In the aftermath, the Pound recovered to above 1.3000, and the Euro reached over 1.1200 overnight.
UK Public Sector Net Borrowing improved from £10.300B the previous month to £10.051B and spending was higher in August as expectations of stimulus in November intensifies.
In the Bank Of England's latest agents report, business sentiment has improved in the month of August. The OECD has revised UK GDP (growth) forecasts for 2016 modestly upward but tellingly the 2017 forecast was halved, to 1%. Consumer sentiment and spending has been strong despite Brexit, even where market perceptions have been more pessimistic.The Pound ended the day at around the 1.1647 to the Euro and 1.3039 against the Dollar.
There was no data to note in Eurozone Area and consequently Euro trading was dictated by events elsewhere.
Data To Watch: 1.30pm US Initial Jobless Claims. 2pm US Housing Price Index. 2pm EUR ECB Draghi Speech. 6pm UK BOE Governor Carney's Speech.
Posted in Daily Market News on Sep 22 2016
US housing data flew under the radar with this evening’s Interest Rate Decision being the main focus. US Building permits in August missed targets at 1.170M, printing in lower at 1.139M. August Housing starts as figures missed expectations by a long way, printing at 1.142M.VIEW FULL ARTICLE
Posted in Daily Market News on Sep 21 2016 by