Sterling

The Bank of England will announce at 12pm (London) if they are to maintain the current base rate of 0.50% and if they will adjust the current level of asset purchase of £375bn. The UK economic recovery is beginning to take hold, and there has been considerable speculation as to when the Lady of Threadneedle St. will raise base rates from their current record low. KPMG/REC: UK Jobs Growth Strongest Since March 2010 < 7% threshold here we come... — Joe Bond (@Joe_T…

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The Markit/CIPS UK Services PMI, came out at a six-month low for December at 58.8, dipping from Novembers buoyant 60.0. Analysts had expected the release to be between 60.0 and 60.3, above 50 is expansion. The figure though below forecasts is a positive release, though the concern is that this is part of a larger trend. Last week both manufacturing and construction PMIs fell from the previous months. Full Markit/CIPS UK Services PMI Release George Osborne Chancellor George…

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As expected, the Bank of England has left interest rates unchanged at 0.5% and asset purchases at £375bn. The full release from the BoE can be found here. @BankofEngland maintains #BankRate at 0.5% and the size of the Asset Purchase Programme at £375 billion — Bank of England (@bankofengland) December 5, 2013 The release at 12pm today, came during the Chancellor George Osborne’s Autumn Statement with the opposition still responding.…

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The media coverage of the housing market in the UK has been prominent since the economic crisis began in 2007. The global melt down began with mortgages being given to sub-prime borrowers, and then repackaged and sold as investment grade debt by banks and brokers. The property market in the UK ground to following the collapse of Lehman’s as banks tightened up their lending requirements and some home-owners were left in negative equity. Fast forward 5 years and there is a resurgen…

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The Bank of England governor Mark Carney’s comments during the latest inflation report on Tuesday. Prior to the news conference Sterling was bid on the back of the better than expected employment figures, which had traders predicting that the BoE would raise rates sooner than had been predicted. Under the banks forward guidance, 7% unemployment level had been the threshold, highlighted by Carney as the level that monetary policy would begin to be tightened. This was thrown in to…

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UK ILO Unemployment beat expectations, coming in at 7.6% vs expectations of 7.7%. The number of unemployed people in the UK fell 48,000 to 4.27million. The Bank of England’s forward guidance; focused upon a headline unemployment rate of 7%. Today’s figure is a positive step towards this level, which potentially will see an increase in interest rates in the not too distant future. However one potential concern highlighted by analysts is the relatively stable hourly earnings…

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Markit/CIPS UK Services PMI business activity rises at the fastest pace since May 1997. This is a strong figure, which builds upon recent data points from the UK. Following the release Sterling rallied in the FX market, with cable trading back above the 1.60 handle. Key points: -The backlog of work increased pushing employment payrolls higher -“Manufacturing, services and construction all continued to see very strong rates of expansion, pointing to an on-going broad-b…

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On Monday, there was further good news for the UK economy, as the Construction PMI was released at the highest level since 2007. The British economy is beginning to see sustainable growth following the economic crisis that began over 5 years ago. The positive macro data adds further pressure on Carney, that the Bank of England will need to bring forward the tightening of monetary policy. UK #construction PMI highest since Sep'07, = c2.5% q/q growth rate for sector & big GD…

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The Governor of the Bank of England Mark Carney spoke in Wales to discuss how he will attempt to address the regional economic imbalance. The issue has been a long standing problem, and following the collapse of the UK mining and manufacturing industries has only been exacerbated. Regional cities, which had grown on the basis of industry such as ship building, saw a rapid decline of living standards as the industries collapsed and unemployment took hold. In contrast the capital has a thrivin…

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On Twitter I got involved in a conversation about the regional disparity in property prices, and where the crisis had started. This then highlighted the similarities of the US sub-prime crisis and the current housing market and policy in the UK. @dlknowles @chakrabortty crisis started in estate agents in the US giving mortgages to sub prime borrowers.. — Joe Bond (@Joe_Trading) October 24, 2013 The subprime crisis began with as the housing market in the US was bubb…

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Sterling was given a boost in early trade as comments from the Governor of the Bank of England Mark Carney. The Governor had been making visits to cities in the North of England and was interviewed by local newspapers Thursday, as these comments reached traders on Friday morning Sterling jumped against the greenback by 80 cent to a session high of 1.6132. Quantitative Easing Analysts and market commentators have been quick to criticise to the timescale of policy tightenin…

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The UK unemployment rate has been brought into investors focuses following Governor of the Bank of England Mark Carney’s Forward Guidance. He stated that the interest rates would be held at the record low of 0.50%, until the unemployment rate drops to 7% from the current 7.8%. The Bank of England’s forecasts that the unemployment rate will fall to 7% in 2016, though the markets are pricing an increase in interest rates in 2014. There are various caveats to the Forward Guida…

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As expected the MPC have left interest rates on hold at 0.50% and quantitative easing at £375bn. Carney is now under pressure following the recent better than expected data points from the UK, pointing to a recovery that it is gaining traction. The Governors Forward Guidance, of ultra-loose monetary policy seems to be being ignored by the markets, as traders believe that the bank will be forced to raise rates earlier than forecast. The minutes of the meeting will be publish…

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Data released by Markit/CIPS showed that activity in the dominant service sector rose at the sharpest rate since December 2006. The strong recovery for the UK seems to be gaining traction, which is a positive sign as we reach the 5-year anniversary for the collapse of Lehman Brothers. It is important to note that Carney’s forward guidance stipulates that the Bank of England will hold rates at record lows until employment falls to 7%. Employment is usually a lagging indicator of e…

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“An Englishman’s home is their castle” The obsession with home-ownership, is a mere' aspiration for the majority, though it is becoming unachievable in some locations without the help of the bank of mum and dad. House prices vary significantly in the UK and even by street in the capital. A roof over a person’s head is a basic need, but homeownership provides stability and can be more cost effective than rent. Today it was announced that UK mortgage ap…

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