Intra-Day Market Moving News and Views
17 Dec 2014 09:46GMT
GBP/USD - ...... The British pound remained under pressure in Asia and continued to weaken throughout the session. Price eventually hit a low at 1.5677/78 in early European morning, however, cable pared its losses and rebounded strongly to 1.5729 after the release of UK average earnings and BoE minutes.
Bids are now seen at 1.5700/10 and more below at 1.5680/90 with stops building up below there whilst initial offers are noted at 1.5750/60, suggesting buying on dips is favored.
The BoE has focused more on wage growth as it considers when to start raising rates. Data due to be released at the same time of the minutes on Wed was expected to show earnings rising faster than inflation for a 2nd month in Oct.
The minutes showed the majority who voted to keep rates on hold thought faster pay growth would be required to meet the 2% inflation target.
However, those in favour of a rate rise thought this was already in train.
Financial market investors have pushed back their bets on the timing of the next interest rate hike markedly over the past few months, n are now pricing in the first move late next year.
Last month the BoE issued forecasts that showed British inflation will likely fall below 1% in the next 6 months, while Carney suggested markets were right to rule out an interest rate hike any time soon.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.