OctaFX | OctaFX Forex Broker
Open trading account
Back

BoE Inflation report, UK employment eyed - RBS

FXStreet (Bali) - According to RBS FX Strategists, if the November Inflation Report reinforces expectations around low rates for longer, then GBP looks set to struggle, most obviously against the USD.

Key Quotes

"The UK is the main focus tomorrow with the release of the Bank of England (BoE) Inflation Report and the UK labour market report. Downward revisions to both the growth and inflation forecasts seem likely in the November Inflation Report given the signs of a further slowdown in the pace of the UK recovery, deteriorating global economic outlook and signs of more broad-based (if mild) disinflation. This should broadly validate market pricing for the first Bank Rate rise to come in August 2015, in our view. "

"However, risks remain around the press conference in light of Carney’s hawkish Mansion house speech back in June which showed the BoE’s ability to increase two-way risks in the pricing of market interest rate expectations."

"Market interest rate expectations have moved a long way, but if the November Inflation Report reinforces expectations around low for longer UK policy rates, then GBP looks set to struggle, most obviously against the USD given recent further solid US data. The UK employment figures may also keep downside pressure on GBP."

USD/JPY tucked in below overnight new highs

USD/JPY is trading at 115.76, up 0.26% on the day, having posted a daily high at 116.02 and low at 115.26.
Read more Previous

Earthquake shakes buildings in Tokyo

Reuters reports that an earthquake has shaken buildings in Tokyo, according to witnesses.
Read more Next
Start livechat