OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: FLS extension is no game changer - Nomura

FXstreet.com (Barcelona) - Nomura economist Philip Rush believes that the UK´s FLS extension is no game changer.

He begins by noting that the Funding for Lending Scheme has been extended by a year and to include non-bank credit providers in the allowance. Loans to SMEs are slightly encouraged by assigning a higher weight to them for the FLS allowance. He feels that without changes to the binding capital requirements, this does nothing to affect deleveraging pressure Therefore he sees the incentive to lend to SMEs coming at the expense of households, and even that is possibly offset elsewhere. He writes, “Although we see the effect on the real economy as marginal, we believe such CE lessens the probability of QE.”

Forex: EUR/USD spikes to 1.3114 but stays below 1.3000

The market is deciding what to do with the EUR/USD as the hourly and 4 hours chart hold a negative stance and the pair peaked at 1.3034 high on the European morning. The NY session is seeing the EUR/USD finding support at 1.2980 (1.2974 session low). The market found its way to spike to 1.3014 high quickly before going back below the psychological level at 1.3000.
Read more Previous

Forex Flash: RBA lacks grounds to cut rates from 3.00% – UBS

The Reserve Bank of Australia already has an easing bias and that was reinforced this morning by Q1 CPI inflation remaining low. The headline rate rose by 0.4%q/q and 2.5% YOY compared with 2.2% YoY in Q4'12. However, the underlying measures of inflation were soft.
Read more Next
Start livechat