Bank of England Inflation Report

More Diversified Financial Market Movements

February 4, 2016

At least for today, it’s no longer a matter of risk-on or risk-off for all assets.  Some of this differentiation stems from more blatant currency warfare. Yesteday’s revealed sharp decline in the U.S. non-manufacturing purchasing managers index triggered a dollar sell-off.  The U.S. currency today has fallen by an additional 0.7% against the euro and […] More

Rate Hike in the U.K. Unlikely Until 2016

August 6, 2015

Sterling fell 0.6% overnight against the dollar, which otherwise shows gains of 0.2% versus the Swiss franc and Aussie dollar but losses of 0.4% relative to the kiwi and 0.1% vis-a-vis the loonie and euro.  The yen and yuan are unchanged against the dollar. Share prices declined 1.1% in Australia, 0.9% in Indonesia and China, […] More

Continuing Euro Support above $1.1300

February 12, 2015

The euro rose 0.2% against the dollar.  Despite persistent concerns about Grexit — Greece abandoning the common European currency or being thrown out by other members — the euro, now at $1.1342, repeatedly finds support whenever it dips under $1.13.  Greek debt talks have made very little progress.  They will resume next Monday, with creditors […] More

Weaker Pound and Dollar

November 12, 2014

Sterling fell 0.5% against the dollar, which has otherwise depreciated 0.8% relative to the kiwi, 0.3% versus the euro, 0.2% vis-a-vis the yen and Australian dollar and 0.1% against the loonie.  The Swiss franc at 1.2022 per euro moved nearer to the 1.2000 ceiling that Swiss National Bank officials promise unlimited intervention to prevent further […] More

Bank of England Publishes Quarterly Inflation Report with Updated Policy Guidance

February 12, 2014

The Inflation Report observes that Unemployment probably reached the “guidance” threshold in January. Real GDP is likely to expand 3.4% this year, considerably more quickly than bank officials imagined previously. Excess productive capacity has not been eliminated fully and will keep inflation near the 2% medium term target. Labor productivity is not growing as fast […] More

Markets Accepting the Message that Fed Tapering Will Continue

February 12, 2014

Janet Yellen’s message had two parts.  First, the onset of a rising federal funds rate remains far away and the economy remains vulnerable.  Second, a measured pace of quantitative easing will not be halted except in the case that the economy seems to be veering sharply below expectations, that is toward recession.  This message was […] More

Bank of England Report Opens Door Wider to an Earlier Rate Hike

November 13, 2013

Sterling rose as high as $1.6004 following release of the central bank’s quarterly inflation report and shows a net gain of 0.4% from Tuesday’s close. The dollar otherwise climbed 0.5% against the kiwi and 0.1% versus the euro and Swiss franc.  The dollar has softened 0.2% against the yen and 0.1% relative to the Australian […] More

Higher Bund and Gilt Yields

February 13, 2013

The yields on 10-year sovereign German and British debt jumped by six and ten basis points overnight.  The 10-year Japanese JGB yield slipped a basis point, but futures point to a higher yield in U.S. Treasuries. The yen strengthened to 92.81 per dollar overnight but is presently 0.2% softer on balance at 93.64.  The U.S. […] More