S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
ING’s Chris Turner notes that Bank of England Governor Andrew Bailey has successfully dampened expectations for further tightening, with priced hikes falling sharply alongside lower Oil prices. Despite this, Sterling has held up relatively well, but Turner argues the stronger Dollar narrative should limit GBP/USD near 1.3500 and keep EUR/GBP supported around the 0.8610/20 area.
BoE rhetoric cools rate expectations
“It seems Bank of England Governor Andrew Bailey has done a good job of quelling rate hike expectations this year.”
“At one point, the market was pricing in over 80bp of BoE tightening this year, and now we just have 33bp priced.”
“In a speech on Friday, Governor Bailey said the BoE could look through temporary above-target inflation, as long as second-round effects did not emerge.”
“The removal of an aggressive BoE tightening cycle has not heavily weighed on sterling.”
“Yet the stronger dollar story should keep a lid on GBP/USD near 1.3500, and EUR/GBP support looks solid at 0.8610/20.”
Profit
Everyone's racing to cut costs. We're racing to create profit.
Start Selling through Service
