The GBP/USD soared today as Brexit fears lessened. The pound was able to gain steadily against a strong US dollar. BoE governor Carney said today
The GBP/USD soared today as Brexit fears lessened. The pound was able to gain steadily against a strong US dollar. BoE governor Carney said today “Questions about downside risks to the UK from a Leave win in the upcoming EU Referendum are sure to dominate, but perhaps more enlightening will be the officials’ views on some of the recent misses in the data (the PMIs in particular). With two members (including the hawkish Forbes) coming out in recent days to express concern over economic momentum, this could mark an opportunity for other MPC members to take a more dovish turn.” The pound climbed to trade at 1.4581.
Sterling jumped 0.9 percent versus the euro and was 0.7 percent stronger at $1.4580, its first advance versus the greenback in three days. An ORB survey for the Daily Telegraph newspaper found older voters, previously found to back leaving the EU, are switching sides.
The Financial Times reported that Bank of England governor Mark Carney said he doesn’t expect policymakers to say anything further that is “substantially different” over the potential risks to the UK economy from a Brexit, after the Bank came under heavy fire over analysis published earlier this month.
The bank’s monetary policy committee was accused of overstepping the mark by campaigners in favor of leaving the European Union when it earlier this month warned that breaking ties with the EU could pose a risk to jobs, raise prices and cause a fall in the pound.
The MPC’s next policy decision will be announced on June 16, a week before the referendum is held.
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Upcoming Economic Events that you should be monitoring:
Wednesday, May 25, 2016
Cur. | Event | Actual | Forecast | Previous | |||
USD | API Weekly Crude Oil Stock | -1.140M | |||||
NZD | Trade Balance (YoY) (Apr) | -3,940M | -3,380M | ||||
NZD | Trade Balance (MoM) (Apr) | 60M | 117M | ||||
AUD | Construction Work Done (QoQ) (Q1) | -1.5% | -3.6% | ||||
EUR | EU Finance Ministers Meeting | ||||||
USD | Goods Trade Balance (Apr) | -60.10B | -56.90B | ||||
USD | FOMC Member Harker Speaks | ||||||
USD | Services PMI (May) | 53.1 | 52.8 | ||||
CAD | Interest Rate Decision | 0.50% | 0.50% | ||||
USD | Crude Oil Inventories | 1.310M | |||||
USD | FOMC Member Kashkari Speaks | ||||||
USD | FOMC Member Kaplan Speaks |
Government Bond Auctions
Date Time Country Auction
May 25 11:03 Sweden Sek 1bn 3.5% 2022 & Sek 3bn 1% 2026 bonds
May 25 11:05 Norway Holds bond auction
May 25 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund
May 25 19:00 US Holds 5Yr Notes Auction, 2Yr FRN
May 26 11:10 Italy Announces details of bond auction
May 26 11:10 Italy Holds Zero-coupon/BTPei auction
May 26 17:20 Sweden Details of I/L auction on Jun 02
May 26 19:00 US Holds 7Yr Notes Auction
May 30 11:10 Italy Holds bond auction
Jun 01 10:30 Denmark Holds bond auction
Jun 01 11:30 Germany Eur 4bn Apr 2021 Bobl
Jun 01 11:30 UK 1.5% 2021 Gilt
Jun 01 17:20 Sweden Announces details of bond auction on Jun 08
Jun 02 10:30 Spain Holds bond auction
Jun 02 11:03 Sweden Holds I/L bond auction
Jun 02 11:50 France Holds bond auction