OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: What can Carney do? - Societe Generale

FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale has asked, aside from low rates, low gilt yields and a weaker pound, “What can Carney do?”

He notes that the weakness of UK real income growth is the biggest obstacle in the way of UK economic revival.

Juckes adds that income growth is currently running (at 5%) well ahead of average wages (1.2%) but even if households have de-leveraged enough (for now), real consumption growth is constrained. Further, he comments that nominal wage growth is held back by a global labour market, the weakness of the economy and the weakness of UK labour productivity. He writes, “And if wages don’t increase faster and inflation can’t/won’t fall much further, the only way to boost consumption is to boost fiscal transfers, cut taxes, or increase either borrowing or employment growth. Policy-makers will try all and any ways to encourage banks to lend more, but they may well fall back on boosting employment with the help of a weak pound, in the end.”

Canada: Canadian Portfolio Investment in foreign securities rose to $4.4 B in February

Canadian residents have purchased $4.4 billion in foreign securities during February, while foreign residents shrunk their holdings of Canadian securities by $6.31 billion during the same period...
Read more Previous

US Redbook index (YoY) falls to 2% in Apr 7; -2.7% (MoM)

Read more Next
Start livechat