Intra-Day Market Moving News and Views
16 Dec 2014 09:33GMT
GBP/USD - 1.5630... Although the British pound traded with a firm bias in Asia and briefly rose to session high at 1.5678 in European morning, price swiftly surrendered its gains and fell sharply to 1.5612 after the release of weaker-than-expected UK inflation data.
Statement from BoE's Carney, quote:
'momentum may return to UK housing market after stamp duty cut and falls in mortgage rates;
international risks likely to figure prominently in 2015 stress test;
given footprint of largest UK banks in Asia, can expect Asian risk to be in future stress test;
want to explore how contagion can spread from less liquid mkts to core mkts;
UK institutions have very modest banking exposure to Russia;
BoE will look through direct impact of oil price on UK inflation.'
BoE FPC quote:
'judges no system-wide macroprudential actions needed in response to UK stress tests;
decides at Dec meeting to set counter-cyclical capital buffer rate for UK exposures at 0%;
risks from UK housing market have not risen since June but household debt still high;
UK banks' recent misconduct and operational failings show better governance needed;
stress tests give clean bill of health to Barclays, Hsbc, Nationwide, Santander UK and Standard Chartered.'
BoE stress tests show 'co-operative bank was only one to fall below 4.5% capital threshold;
RBS exceeded 4.5% threshold after submitted revised capital plan, BoE judges additional plan not needed;
Lloyds exceeded 4.5% threshold, not required to submit revised capital plan due to action since end 2013.'
'BoE stress tests show UK banks could continue to serve economy even after severe stress.'
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.