The pound sharply reversed overnight losses (the result of weaker than expected UK retail sales 0.90% Y/Y, exp. 1.7%) rising as much as 0.3% to 1.2794 after the BOE announced it kept rates at 0.25%, however the hawkish surprise was the 5-3 vote, far closer than the 7-1 expected, as two more MPC members , Saunders and McCafferty joined Forbes in calling for a rate hike on the back of rising inflation concerns.
As the Fed begins its two-day meeting, global stocks have recovered their footing and European shares rise, led by a bounce in tech stocks as last Friday's global selloff that started in the sector shows signs of abating. Asian stocks and U.S. futures gain as investors turn their attention to today's Jeff Sessions testimony as well as tomorrow's barrage of macro data including Yellen, CPI and retail sales.
This is an extract and summary from "New Gold Pool at the BIS Basle, Switzerland: Part 1" which was first published on the BullionStar.com website in mid-May.
Part 2 of the series titled "New Gold Pool at the BIS Basle: Part 2 – Pool vs Gold for Oil" is also posted now on the BullionStar.com website.
Now that Trump finally figured out he needs lower interest rates to preserve the debt-funded "growth" of the US and prevent the $20 trillion in government debt from spontaneously combusting (as higher rates lead to higher interest outlays, resulting in even more debt and so on)...
... speculation about who may replace Janet Yellen has faded despite her term ending in 2018.
US equity futures have legged lower this morning as Cable tumbles folowing remarks from Bank of England governor Carney that they "haven't modeled for a disorderly Brexit." It appears the omniscience of central bankers is very briefly in question....
Dow Futures legged 40 points lower as Cable broke below 1.29...