GBP AUD Outlook Slips as BoE Tempers Market Expectations

EUR  USD Daily Chart- Fibonacci

EUR USD Daily Chart- Fibonacci

Inflation and wages in Britain could both be pushed higher in the event of a sharp decline in the number of migrant workers coming to the United Kingdom after Brexit, Bank of England governor Mark Carney said on Monday (18 September). Interest rates are likely to be higher as a result, he said.

Though Carney did accept that some tightening would be required from the BOE to retain control of the economy, he did not give any specific timeline for the same and that seemed to disappoint the markets as the pound fell through after his speech and move below 1.35 later in the day.

The BoE governor also said there are global factors that could justify United Kingdom policy tightening soon.

Some analysts predicted that there could be a United Kingdom interest rate hike as soon as November, with another following in the first half of 2018.

This weighed on market speculation that rates could be hiked multiple times over the next year, causing the Pound to slip from its recent highs.

Maria Expected to Be a Dangerous Major Hurricane Before Reaching Leeward Islands
Lee, the third storm in the Atlantic, fizzled from a tropical storm to a tropical depression Sunday , the hurricane center said . Earlier it was reported that the Pacific tropical storm, "Max" was formed Wednesday off the southwest coast of Mexico.

Figures released last week by the Office for National Statistics (ONS) showed Britain's unemployment rate hit a new low in the quarter to July 2017, while wages increased less than expected as they continue to lag behind inflation.

"In his speech, Mark Carney highlighted diminishing slack in the United Kingdom economy and observed that this reduces the BoE's tolerance of above-target inflation".

That prompted a half-cent jump in the pound, to $1.3535 from around $1.3485 before the article was published.

In a speech in Washington on Monday, Mr Carney said that was one reason why the central bank may need to increase interest rates in the coming months, echoing the surprise statement issued by United Kingdom policymakers last week.

"UK economic growth has unquestionably slowed from the rates seen throughout much of 2016", Nina Skero of CEBR said.

Final Fantasy IX is available right now on PS4
By the looks of it, it seems like the current gen console, the PlayStation 4, is the next stop for this entertaining video game . According to earlier reports, it was suggested that Square Enix could be getting ready to bring Final Fantasy IX onto the PS4.

The governor's speech was planned long...

Carney criticized Brexit saying it is an example of de-globalisation not globalisation.

Brexit is an example of "stepping back in order to jump better", Carney said - employing the French phrase "reculer pour mieux sauter" - but he added that "any reduction in openness with the European Union is unlikely to be immediately compensated by new ties of similar magnitude with other trade partners".

Some of Carney's comments were interpreted as more dovish in the wake of last week's MPC statement, reinforcing the view that the rate-hike cycle in the United Kingdom will be very shallow-or "limited and gradual", to use Carney's phrase.

More officers relieved of duty following deadly US Navy collisions
Among other things, the report said "crew size reductions contribute to sailor overwork and safety risks". Seventh Fleet, ordered the relief of the commander of Task Force 70, Rear Adm.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.