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Gold resumes rally towards $ 1160 ahead of NFP

Gold futures on Comex resumed the ongoing bullish run and jumped to the highest levels since Oct 29 during the European trades, as we head towards the US NFP data.Gold: 1160 on sightCurrently, gold trades modestly flat at 1157.80, retreating slightly f... [...]

BoE: Next rate move is up and not down – Investec

Research Team at Investec, suggests that yesterday's ‘Super Thursday’ UK event saw the Bank of England’s MPC keep interest rates at the record lows, with the minutes showing a 9-0 vote (Ian McCafferty is no longer calling for a hike).

Key Quotes

“The Quarterly Inflation Report adopted a dovish tone, downgrading near term growth and inflation projections, suggesting that inflation would be marginally above the 2% target in two years’ time. This is on the basis of a much flatter yield curve now compared to the last inflation report in November, combined with a 3.5% fall in the trade weighted value of sterling.

Although the release was initially met with Sterling selling, the subsequent press conference from Governor Mark Carney, sent the Pound back higher towards pre-event levels. Carney adopted a more upbeat tone on the economy than one would have expected. He also confirmed the entire MPC believe the next rate move is more likely to be up than down, going as far as to say the market’s current path of pricing implies the BOE will overshoot its inflation target, as not enough tightening is priced in.

Governor Carney did not comment on the EU referendum outcome, although he did mention that he believes the full risk premium for the event is not yet priced into UK markets. The Pound finished the session back toward the lows of the day, but now trading in the 1.45 handle against the greenback with the event risk out of the way, the Pound is certainly in a much stronger place than one would have expected last week.”

Research Team at Investec, suggests that yesterday's ‘Super Thursday’ UK event saw the Bank of England’s MPC keep interest rates at the record lows, with the minutes showing a 9-0 vote (Ian McCafferty is no longer calling for a hike).

(Market News Provided by FXstreet) [...]

US NFP to act as a barometer of economy – Lloyds Bank

Research Team at Lloyds Bank, suggests that the focus today is the official US January employment report while the stellar jobs growth in Q4, averaging about 280k a month, seemed somewhat at odds with weaker GDP growth.

Key Quotes

“Today’s figures will attract particular attention as it will provide a timely update on the state of the US economy in the new year. Financial market volatility has picked up in recent weeks, related in part to increasing global economic headwinds, and has resulted in more cautious stance on the monetary policy outlook among major central banks.

The unofficial ADP employment report on Wednesday pointed to private payrolls growth of around 200k, which suggests that job growth remained relatively strong in January, although the mapping from the ADP to the official figures is not always precise.

Today’s official US non-farm payrolls are expected to be around 180-190k, down from 292k in December, while the unemployment rate is forecast to remain unchanged at 5.0%. Annual average hourly earnings growth is expected to ease to 2.2% from 2.5%.”

Research Team at Lloyds Bank, suggests that the focus today is the official US January employment report while the stellar jobs growth in Q4, averaging about 280k a month, seemed somewhat at odds with weaker GDP growth.

(Market News Provided by FXstreet) [...]