IronFX Daily Commentary by Charalambos Pissouros | 11/05/2017
May 11, 2017 9:18 am
Sterling consolidates ahead of BoE’s “Super Thursday” • Besides the rate decision and the minutes, we also get the Inflation Report with updated economic forecasts, and a press conference by Governor Carney. • The forecast is for the BoE to remain on hold. The tone of the minutes may be slightly more worried than previously, due to the latest slowdown in GDP. • Also, GDP forecasts may be revised down. Thus, we think the reaction in sterling may be negative. • The biggest risk to this view would be more than 1 Committee member voting for a rate hike.
RBNZ keeps the door for further easing open; NZD tumbles • Overnight, the RBNZ remained on hold, but did not communicate a more optimistic bias. • It noted that although economic data are improving overall, some of that progress is transitory. • Most importantly, it kept the door open for further rate cuts (which many expected it could close). • NZD tumbled, and may remain under pressure for a while, perhaps until concerns around Chinese growth ease a little.
As for the rest of today’s highlights: • Sweden: CPI for April (07:30 GMT). Both the headline and core rates are expected to have risen, which could support SEK. • UK: Industrial production and trade balance data for March (08:30 GMT). • Speakers: Besides Carney, ECB Vice President Vitor Constancio (07:00 GMT), New York Fed President William Dudley (14:00 GMT) and ECB Exec. Board member Peter Praet (16:30 GMT).
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Sterling consolidates ahead of BoE’s “Super Thursday”
• Besides the rate decision and the minutes, we also get the Inflation Report with updated economic forecasts, and a press conference by Governor Carney.
• The forecast is for the BoE to remain on hold. The tone of the minutes may be slightly more worried than previously, due to the latest slowdown in GDP.
• Also, GDP forecasts may be revised down. Thus, we think the reaction in sterling may be negative.
• The biggest risk to this view would be more than 1 Committee member voting for a rate hike.
RBNZ keeps the door for further easing open; NZD tumbles
• Overnight, the RBNZ remained on hold, but did not communicate a more optimistic bias.
• It noted that although economic data are improving overall, some of that progress is transitory.
• Most importantly, it kept the door open for further rate cuts (which many expected it could close).
• NZD tumbled, and may remain under pressure for a while, perhaps until concerns around Chinese growth ease a little.
As for the rest of today’s highlights:
• Sweden: CPI for April (07:30 GMT). Both the headline and core rates are expected to have risen, which could support SEK.
• UK: Industrial production and trade balance data for March (08:30 GMT).
• Speakers: Besides Carney, ECB Vice President Vitor Constancio (07:00 GMT), New York Fed President William Dudley (14:00 GMT) and ECB Exec. Board member Peter Praet (16:30 GMT).
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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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