BOE risks of CPI being above or below target in 2 years balanced if rates held at 0.5%, 175 bln QE

Source: www.forexlive.com

The Bank feels the risks of CPI being above or below target in 2 years balanced if rates held at 0.5% , QE at 175 bln. BOE chart shows CPI below target at around 1.4% in 2 years assuming market rate path, QE of 175 bln. More likely than not inflation will fall below 1% in Autumn triggering letter to the government. Rates to be on hold for sometime to come so it seems. This is underminning cable a little, presently at 1.6425. BOE chart shows GDP starting to grow Q-1 2010, reaching just below 3% in 2 years. Tight credit, past falls in asset prices, high public/private debt likely to hinder recovery.


Read more...

  • GBPUSD is facing 1.5962 key support

    GBPUSD is facing 1.5962 key support again, a breakdown below this level will indicate that the longer term uptrend from 1.5344 (Dec 28, 2010 low)...

  • Cable slump extends as stops triggered

    Well looks as though there were decent-sized stops below 1.5850, as suspected. We’ve moved quickly lower, presently at 1.5810. Technical supports lined up at 1.5800/05, 1.5775 and 1.5750/55. Risk sentiment isn’t in good shape this morning, S&P futures off 7 points, and this will be...

  • FOREX VIDEO - Pre London Outlook August 10th 2009

    Hi everyone, hope you had a profitable NFP morning and a restful weekend. For today’s outlook I take a look at the Euro USD and Pound Swissy pairs. I make use of the longer term charts to try and get a fix on what we can expect intraday. Using this analysis I have put together a few trend...

  • GBP/USD consolidating after surge

    Cable has been a standout in late London trading as EUR/GBP definatively tool out the 0.85 region and fell toward 0.8480. This helped launch cable higher and set off a short-covering rally in all the currencies which finds EUR/USD back at 1.4025 and Cable at 1.6490. It reached 1.6510 at its rebound...

  • WORLD FOREX: Dollar Mixed Ahead Of Payrolls, Pound Suffers

    By Gary Stride Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The dollar is mixed in light trade Friday with most players keeping to the sidelines ahead of the ... See all stories on this...