IronFX Daily Commentary by Charalambos Pissouros | 09/08/2016
August 9, 2016 8:47 am
BoE “hawk” Ian McCafferty says more easing is likely to be required • BoE’s Ian McCafferty said that if the economy turns down in line with initial surveys, then more easing is likely to be required. • Bank could cut rates further and step up its QE program, but in a gradual way. • McCafferty is a well-known hawk in the BoE and dissented the August decision to introduce QE (but voted for a rate cut). • The pound weakened following his comments. • GBP could head lower in the foreseeable future, weighed on by BoE’s easing bias, weaker GDP growth and slowing investment inflows.
Today: • UK: NIESR GDP estimate for May-Jul. This will cover for the first time post-referendum activity. A slowdown could bring GBP under renewed selling interest. Industrial production and trade balance, both for June, are coming out as well but they may be seen as outdated. • US: NFIB small business optimism for July and prel. Unit Labor Cost Index for Q2. • Canada: Housing starts for July are exp. to decline.
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BoE “hawk” Ian McCafferty says more easing is likely to be required
• BoE’s Ian McCafferty said that if the economy turns down in line with initial surveys, then more easing is likely to be required.
• Bank could cut rates further and step up its QE program, but in a gradual way.
• McCafferty is a well-known hawk in the BoE and dissented the August decision to introduce QE (but voted for a rate cut).
• The pound weakened following his comments.
• GBP could head lower in the foreseeable future, weighed on by BoE’s easing bias, weaker GDP growth and slowing investment inflows.
Today:
• UK: NIESR GDP estimate for May-Jul. This will cover for the first time post-referendum activity. A slowdown could bring GBP under renewed selling interest. Industrial production and trade balance, both for June, are coming out as well but they may be seen as outdated.
• US: NFIB small business optimism for July and prel. Unit Labor Cost Index for Q2.
• Canada: Housing starts for July are exp. to decline.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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