John J Hardy
Saxo Bank’s head of FX strategy John Hardy takes a closer look at trends and moves in today’s forex charts, including EURUSD, USDJPY, AUDUSD, and EURSEK.
Squawk / 08 February 2018 at 12:09 GMT
Head of FX Strategy / Saxo Bank
Bank of England decision: the BoE hawkishly upgrades its guidance by saying that it needs to hike rates earlier and faster than it anticipated at its November meeting, and the inflation forecast for 2.2% by Q1 of 2020 suggests a need to play catch-up. GDP forecasts were slightly raised for 2018 and 2019 as well.

This catches the market distinctly off guard as recent rhetoric from Carney on sterling led some to believe that he was happy to see the currency doing some of the lifting to avoid inflation pressures.

EURGBP is slammed lower and not far from he 0.8690 area downside break level suddenly, while GBPUSD finds itself near 1.400 within a couple of minutes from 1.3850 earlier today as the market moves to dramatically raise the odds of a May rate hike, with now a majority looking for a hike then and even a small minority looking for a rate move next month.
Market Predator Market Predator
@John: Thanks for valuable summary.
For me Mr. Carney is top unforeseeable central banker!
usxau usxau
Market Predator - great poker player imo! :)
seas seas
This Brexit business is fueling inflation.
seas seas
Good show Brtis!


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