Analysis and Recommendations: The GBP/USD edged higher ahead of important data this week to trade at 1.5412 with the UK on holiday today. Traders have
The GBP/USD edged higher ahead of important data this week to trade at 1.5412 with the UK on holiday today. Traders have been reviewing comments from the Bank of England as they edge towards a rate increase. Carney said on Saturday a Chinese slowdown could add to pressure pushing down on prices in Britain and risk aversion in global markets could make financial conditions in the country tighter, which would also weigh on inflation.
“These are possibilities, not certainties. Their evolution needs to be monitored, not taken for granted,” he said, before adding that the direct exposure of Britain’s economy to China was relatively modest.
He also said the Bank could “look through” the temporary disinflationary impact on inflation from lower demand in China for commodities but would watch for any longer-lasting impact on Britain from a slowing of the world’s No 2 economy.
“Developments in China are unlikely to change the process of rate increases from limited and gradual to infinitesimal and inert,” Carney said.
The Bank’s main guidance on interest rates has been that when the time comes to raise them, they will go up gradually and to a level lower than before the financial crisis.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Today’s economic releases:
Cur. |
Imp. |
Event |
Actual |
Forecast |
Previous |
|
|
|
Holiday |
United Kingdom – Summer Bank Holiday |
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EUR |
CPI (YoY) (Aug) |
|
0.1% |
0.2% |
Upcoming Economic Events that you should be monitoring:
Tuesday, September 1, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
CNY |
Manufacturing PMI (Aug) |
|
49.7 |
50.0 |
|
||
CNY |
Caixin Manufacturing PMI (Aug) |
|
|
47.1 |
|
||
AUD |
Interest Rate Decision (Sep) |
|
2.00% |
2.00% |
|
||
EUR |
German Manufacturing PMI (Aug) |
|
53.2 |
53.2 |
|
||
EUR |
German Unemployment Change (Aug) |
|
-3K |
9K |
|
||
GBP |
Manufacturing PMI (Aug) |
|
52.0 |
|
|
||
CAD |
GDP (MoM) (Jun) |
|
0.2% |
-0.2% |
|
||
USD |
ISM Manufacturing PMI (Aug) |
|
52.6 |
Government Bond Auctions
Date Time Country
Sep 01 11:15 Austria Holds RAGB bond sale
Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt
Sep 02 11:03 Sweden Holds bond auction
Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl
Sep 02 11:30 UK Auctions new Jan 2021 Gilt
Sep 03 10:30 Spain Auctions Bonos/Obligaciones
Sep 03 11:10 France Auctions OATs
Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep
Sep 03 00:00 US Announces details of 10-year note on 09 Sep