Mark Carney Fools Market
Binary.com Daily Financial Review July 15th 2016
Morning Report: 09.00 Gatwick Airport (to find the sun!)
- As leaders assess the human impact of the devastating Nice terror attacks last night, markets appear to have compartmentalised the incident. The euro itself is rallying and there does not appear to be a wider risk-off move as a result of the attack. Francois Hollande was about to downgrade France’s alert status, sadly this will have to wait a while longer.
- The US dollar is down slightly, while the USD/JPY continues to climb.
- Has Mark Carney exposed himself as a fraud with his doom mongering prior to Brexit? Or does one wonder at the BoE’s independence now that the BoE has passed on its first opportunity to lower rates. The Bank of England leaves rates ‘unch’ in the face of a strong FTSE and a weak GBP. Surprising?
The biggest moves in the FX market yesterday came from the pound which rose after the Bank of England’s MPC opted to keep rates on hold in the face of many who predicted a small cut. The move was not as spectacular as it might have been, however as most expect the move to simply roll on to August where we might expect something significant. Or might not.
- Elsewhere, the Australian dollar is on the up after better than expected Chinese Industrial Production.
Coming up today:
- Coming up today we have BOE governor Carney speaking at 13.00.
- At 13.30, this is followed by US CPI, Empire State manufacturing and retail sales.
- Also at 13.30, Canadian Manufacturing sales are released at the same time.
- At 14.15, we get capacity utilisation and industrial production.
- Finally at 15.00, we have US preliminary UoM consumer sentiment.
- The Australian dollar continues to attract buyers as China concerns take a back seat. The general flow is against the yen right now so we could see further AUD/JPY upside from here.
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