Carney grilled over Brexit decisions

Yesterday’s markets

8th September 2016

  • GBP Halifax HPI m/m: -0.2%
  • GBP Manufacturing Production m/m: -0.9%
  • GBP MPC Member Cunliffe Speaks
  • GBP Inflation Report Hearings
  • USD FOMC Member George Speaks
  • USD JOLTS Job Openings: 5.87M
  • AUD RBA Deputy Gov Lowe Speaks
  • JPY Current Account: 1.45T
  • JPY Final GDP q/q: 0.2%
  • AUD Trade Balance: -2.41B
  • CNY Trade Balance: 346B

Yesterday’s main news came from the Bank of England as Governor, Mark Carney, outlined future monetary policies to MPs. Carney said he is “absolutely serene” about the Central Bank’s preparations for the impact from the Brexit vote. Some investors were suggesting that the BoE may have cut interest rates too early. Carney was also criticized by Brexit supporters for saying the economy would be hit from a vote to leave the EU. Carney remained resilient stating that the “extraordinary preparations” made by the BoE, “cushioned” the economy and will help the UK “make a success of Brexit”. 

The economic docket was relatively light yesterday. The only piece of high tier data came in the form of Manufacturing Production from the UK. The figure failed to meet economists’ consensus, registering a poor -0.9% figure, its worst reading in five months. Sterling depreciated below a key psychological level shortly after this release.

Today’s markets

7th September 2016

  • EUR Minimum Bid Rate
  • EUR ECB Press Conference
  • USD Unemployment Claims
  • USD Crude Oil Inventories
  • CAD Gov Council Member Lane Speaks
  • CNY CPI y/y
  • CNY PPI y/y

In the early hours of the morning, we are expecting to see Trade Balance figures from Australia and China, demonstrating the difference in value between imported and exported goods and services for August. The anticipated numbers are -2.65 billion and 372 billion respectively. At 12:45pm, the European Central Bank will post their Minimum Bid Rate. This figure has stayed the same since March, and is expected to remain at 0.00%. A press conference will follow 45 minutes later, which will be analysed for any clues regarding future monetary policy. US Unemployment Claims and Crude Oil Inventories, will finish off the afternoon’s session.