Daily Update - 21st June 2017
The RBA noted improvement in global economic conditions and sustained property construction investment in China. Their main focus in coming months will remain trends in employment and also the housing market. Sterling fell by almost a full cent against the dollar on Tuesday after Bank of England Governor Mark Carney said now was not the time to raise interest rates, dashing some investors' expectations the central bank had shifted in that direction. A selling reversal hit European equities yesterday afternoon and led to a negative finish on Tuesday. The Pound has remained under a sea of pressure because of political instability, but it also received an additional jolt when Bank of England Governor Mark Carney said he saw no reason to raise interest rates in the U.K in the mid-term. The minutes from the April Bank of Japan’s (BoJ) meeting revealed that the policymakers were expecting weak inflation numbers. Due to this, several members felt that the economy is in risk. Early in the day, BoJ Governor Kuroda is to speak. As head of the BOJ which sets short term interest rates, he has a major influence over the value of the JPY. Traders watch his speeches closely as they are often used to drop subtle hints regarding future monetary policy and interest rate shifts. His comments may determine a short-term positive or negative trend. Moreover, UK will release the Public Sector Net Borrowing released by the National Statistics captures an amount of new debt held by the U.K. governments (the financial deficit in the UK national accounts). Generally speaking, if the Net Borrowing is negative, it means the UK Accounts are surplus, and that should be positive for the GBP.Yesterday’s Focus
Today’s Focus
