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GBP/USD aimed at 1.22 as US Dollar eases back
The GBP/USD is finding some bids for Monday, rebounding from the day's early lows just south of the 1.2100 handle, and the Pound Sterling has a target set on 1.2200 ahead of the Federal Reserve's (Fed) Wednesday rate call. The Fed will beat the Bank of England (BoE) to the punch on central bank action this week, with the BoE slated for the day after. Both central banks are expected to keep rates steady this week, especially with another round of US Non-Farm Payrolls on the docket for Friday, but investors are approaching both monetary policy institutions with very different attitudes. Concerns continue to mount that ... (full story)
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Good afternoon. I’m pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss our recent policy announcement and the Bank of Canada’s Monetary Policy Report. Last week, we maintained our policy interest rate at 5%. We held our policy rate steady because monetary policy is working to cool the economy and relieve price pressures, and we want to give it time to do its job. But further easing in inflation is likely to be slow, and inflationary risks have increased. Before I take your questions, let me give you some economic and financial context for the decision. Since the last time we were here with you, the Canadian economy has slowed, and the data suggest demand and supply are now approaching balance. We’re now seeing clearer evidence that higher interest rates are moderating spending and relieving price pressures. The economy has entered a period of weaker growth, with growth averaging about 1% over the last year. Growth in gross domestic product (GDP) is forecast to remain below 1% for the next several quarters before picking up in late 2024 and rising to 2˝% in 2025. With the economy expected to move into excess supply this year and with growth anticipated to be weak for the next few quarters, we think there’s more inflation relief in the pipeline. We expect inflation in Canada to ease gradually and return to our 2% target in 2025. But we’re worried that higher energy prices and persistence in underlying inflation are slowing progress. The effects of higher interest rates on inflation are most evident in the prices of durable goods, like furniture and appliances that people often buy on credit. These effects have also spread to many semi-durable goods—a category that includes things like clothing and footwear—as well as many services excluding shelter. Inflation in these categories is now running generally at or below 2%. Price increases for groceries, while still elevated at almost 6%, have also eased and are expected to moderate further. However, a number of factors are getting in the way of low inflation. Higher global energy prices are increasing prices at the pump. And that is pushing headline inflation back up. Structural supply shortages in our housing market are boosting prices for shelter. In addition, near-term inflation expectations and wage growth remain elevated, and corporate pricing behaviour is normalizing only slowly. Since we will be discussing housing in more depth today, let me provide some additional detail now. The rise in interest post: BoC's Macklem: Further Easing In Inflation Is Likely To Be Slow, And Inflationary Risks Have Increased post: BOC'S GOV. MACKLEM: IF INFLATIONARY PRESSURES PERSIST, WE ARE PREPARED TO RAISE OUR POLICY RATE FURTHER TO RESTORE PRICE STABILITY.
The U.S. Department of the Treasury today announced its current estimates of privately-held net marketable borrowing for the October – December 2023 and January – March 2024 ...
The rapid rise in long-term interest rates has mostly been a story about the United States, what it means for the domestic economy, deficits and more. But the narrative has gone ...
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A sovereign currency represents the collective characteristics of the issuing nation. The single currency of the European Union – the euro – is far removed from this status. ...
It’s been a quiet, cautiously optimistic start to the trading week for risk appetite, but economic data is poised to pick up in earnest over the next 24-48 hours. In addition to ...
Key facts: • In September 2023, the seasonally adjusted number of new dwellings consented fell 4.7 percent, after falling 7.0 percent in August 2023. • In the year ended September ...
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- Posted: Oct 30, 2023 3:40pm
- Submitted by:Category: Technical AnalysisComments: 0 / Views: 2,637