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What moves currencies? - BoJ rate decision impact
Expert: Tony Juste
Start: Thu, Jan 25, 11:00 GMT
Sponsored by: 
Type of Session: Webinar
Topics
- Economic analysis
- Market impact
Current Session: Europe - U.S.
GBP/USD
Forex Daily Technical Report - Sterling Retreats ahead of MPC Minutes, Yen Rebounds by ActionForex.com
Cable retreats sharply after rally from 1.9261 was limited at 1.9913. Break of 1.9771 support, with bearish divergence condition in 4 hours MACD suggest a short term top is formed. At this point further consolidation is expected to follow with pullback towards 4 hours 55 EMA (now at 1.9685).
- Check out how the currency moved on Live Currency Rates & Charts at FXstreet.com
- Insight on the fundamentals in the Fundamentals section at FXstreet.com
- What's next on the agenda? Take a look at our Economic Events Calendar
- What's going on in the markets? Read our latest Forex news
Other Topics for this Session:
Daily FX Forecast - Daily FX Forecast by S.A.F.E. Ltd
Global FX Daily - European Edition - King comments help to defuse tension in the UK money market – GBP lower by Mellon Foreign Exchange
Wakeup Call on Forex Markets - Australian CPI Dropping for the First Time in Eight Years! by Saxo Bank
Majors at a Glance
- EUR/USD
- Continues to trade around 1.3000
1/24/2007 12:05:46 PM - GBP/USD
- Moves down below 1.9750
1/24/2007 12:06:48 PM - USD/CHF
- Moves up toward 1.2475
1/24/2007 12:07:36 PM - USD/JPY
- Moves up above 121.25
1/24/2007 12:08:16 PM
Analyst Sentiment Index (ASI)
Analysts Sentiment Index - EUR/USD
**Source : CMS Forex, Danske Bank A/S, FXstreet.com, Global Forex Trading Ltd. , KBC Bank, Mizuho Corporate Bank
[ View ASI page ] [ View EUR/USD page ]
Charting the Market Movers
EUR USD, Hourly
GBP USD, Hourly
Top Market Movers Preview
RBNZ Rate Decision
| Previous | Consensus | Time |
| 7.25% | On Hold | Jan 24, 20:00 GMT |
Economic Release Alert - UK GDP and RBNZ Meeting to Take Center Stage by FXCM
The RBNZ monetary policy group is expected to pass on a shift yet again at the conclusion of its two day-meeting. What's more, a growing number of market participants and economists are expecting a new dovish tinge to show up in the comments that follow the actual decision.
[ Full Story ]Top Market Movers Review
BoE Minutes
| Int. Rate | Movement |
| 5.25% | 25bp hike after a 5-4 vote |
US Open Market Points - Pound Cools as BOE Split But GDP Strong by FXCM
The BoE minutes revealed that the Monetary Policy Committee was surprisingly split on the issue of last month's rate hike with the final vote tally a much closer than expected 5-4 (traders were looking for 7-2 and some cable bulls were even calling for unanimous vote).
[ Full Story ]- Minutes of the meeting held on 10 & 11 January - BoE [PDF, 106k]
- BoE MPC split 5-4 for rate hike to 5.25 pct at Jan 11 meeting (AFX News)
- Pound eases on news of split vote to hike rates (AFX News)
- Compare the movements of the different banks on our World Interest Rates Table
- Tony Juste, FX Advisor at FXstreet.com:
"The Bank of England is not unanimous in its decisions and that could affect both UK growth expectations and GBP value in the short term." - FXstreet.com
- Howard Archer, chief economist at Global Insight
:
"We believe that 5.50% will mark the peak in rates as growth loses some momentum over the coming months and inflation heads back down." - The Guardian
- Holger Schmieding, economist at Bank of America:
"With GDP above consensus, there is probably still a 65 percent chance the MPC will do one further hike to 5.5 percent, but 5.75 percent looks highly unlikely on this evidence. It does suggest that the case for further rate hikes is not as solid as the market seemed to believe." - Reuters
UK GDP
| Period | Previous | Consensus | Actual |
| 4Q (QoQ) | 0.7% | 0.7% | 0.8% |
| 4Q (YoY) | 2.9% | 2.9% | 3.0% |
UK GDP increased 0.8% in the fourth quarter; 3.0% in 2006 by FXstreet.com
British Gross Domestic Product has increased by 0.8% in the last quarter of last year and by 3.0% from the fourth quarter of 2005, according to the latest report released by National Statistics. The figures, which came out in line with the market expectations, have been the strongest in more than a year.
[ Full Story ]- Economy grows by 0.8 per cent in Q4 2006 - National Statistics
- UK Q4 GDP up 0.8 pct from Q3, highest quarterly growth since Q2 2004 (AFX News)
- Tony Juste, FX Advisor at FXstreet.com:
"GDP data still shows that growth in the UK is mildly positive, although risks to a lower growth with current interest rates and GBP exchange rate persist, and the trend that might be set for the next quarter will be the determining factor to measure this scenario." - FXstreet.com