GBP: BoE members mute GBP
EUR: ECB in focus today
USD: Fed also send out mixed signals to the market
Sterling moves remain muted and within its recent trading ranges following mixed messages from members of the Bank of England. Members Bailey, Broadbent and Ramsden told the Treasury Committee they all thought that minimum conditions for a rate rise had been met whilst Tenreyo said they hadn’t. However, all believe that an interest rate rise was not appropriate now. Governor Bailey did go on to say however Britain’s economic recovery from Covid-19 had slowed amid supply chain disruption and staff shortages.
No major data or announcements are due out today unfortunately amid more range-bound moves expected
No data out yesterday from Europe with all eyes on the ECB this afternoon. The interest rate is expected to remain at -0.5% and the Bank are expected to reinforce a low-inflation outlook potentially paving the way for additional easing in 2022.
Mixed messages from the Fed’s Beige booklet last night continuing the ongoing trend amongst central banks. On a dovish note, the Fed said that economic activity has slowed sooner than anticipated largely attributed to a pullback in dining out, travel and tourism. On a hawkish note, the Bank stated that inflation is finally now starting to be of concern. Businesses anticipate a significant hike in selling prices in the months ahead and remained optimistic about near term prospects.
Today’s Interbank Rates at 09:20 against sterling. Movement vs yesterday.
|US dollar||$1.380 ↑|
|Australian dollar||$1.869 ↓|
|South African rand||R19.49 ↓|
|Japanese yen||¥151.7 ↑|
Have a great day.