The pound weakened this morning as the market continues to digest BOE Governor, Mark Carney’s speech from yesterday afternoon. Despite echoing the BOE’s tone from last week’s meeting, Carney mentioned the rate rises would be ‘limited’ and ‘gradual’ as ‘there remains considerable risks to the UK outlook.’ The Pound plummeted during his speech, as investors became wary they might have jumped the gun on the hawkish BOE statement last week.
In the Eurozone, German investor confidence grew for the first time in four months, as the German ZEW Consumer Sentiment posted a better than expected 17 points. The result signalled that the concerns over the risk to economic growth from the strengthening Euro are beginning to decrease. It is thought the upcoming elections on Sunday are not a source of uncertainty for institutional investors and analysts.
This afternoon, US President, Donald Trump will be making his first address to the United Nations, to call on the world leaders to confront North Korea and Iran, two countries which his administration sees as the greatest threat to global security. His speech comes as on Friday, North Korea announced they fired a ballistic missile with the range to reach US territory, Guam. Yesterday, Trump also announced the world will see very soon whether the US withdraws from the Iranian nuclear deal, which will reduce economic sanctions if Iran gave up the means to make nuclear weapons. Iran has warned the US, if the agreement is abandoned, it will step up its nuclear program.