US Market Wrap: Carney fiddles while GBP bears burn
- China: GDP 2200 GMT
- China: Industrial Production 2200 GMT
- China: Retail Sales 0130 GMT
- Initial Jobless Claims (Actual 254,000 vs. forecast 265,000)
- Producer Price Index-June (Actual 0.3% vs forecast -0.1%, y/y)
The New York day started with a bang.The Bank of England left interest rates unchanged despite Mark Carney’s comments post-Brexit hinting at a rate cut.
The 0.0270 point, nearly instantaneous spike to 1.3474 from 1.3204 immediately prior to the announcement was evidence that a lot of traders too Carney at his word. As Monty Python fans would say: “Silly buggers”.
GBPUSD quickly retraced half of the move and spend the rest of the day in a 1.3290-1.3350 range.
Traders pretty much ignored today’s US economic data (PPI and Jobless Claims) even though they were stronger than predicted.
comments post-Brexit hinting at a rate cut. Photo: Flickr
--Edited by Adam Courtenay