12 Feb 2015
Session Recap: pound rises across the board
FXStreet (Edinburgh) - The buying interest is growing bigger around the sterling on Thursday, boosted by the hawkish tone struck by Govenor M.Carney in today’s Quarterly Inflation Report. Briefly, Carney stressed that the current lower trend in UK consumer prices would be temporary and that the BoE’s hiking cycle could likely start in early 2016.
In another direction, the EUR continues to trade isolated from the recent failed attempts to clinch an agreement between the Greek officials and the Eurogroup. The Greek debt negotiations are set to continue next Monday although opinions regarding the potential outcome remain pretty divided.
The Japanese yen strengthened to the 118.70/75 band from 120.30 vs. its American counterpart following appreciations by the Bank of Japan, deeming further stimulus as unnecessary and counterproductive.
The ‘currency wars’ are back on the headlines after the Riksbank’s monetary policy stepped into the negative ground for the very first time, allowing its repo rate to decline to -0.10% from 0.0%, catching market participants off guard. The Nordic central bank also joined the QE fashion, announcing purchases for SEK 10 billion of government bonds.
Other headlines in Euroland
Eurogroup comes close to agreement on Greece – TDS
GBP/USD back above 1.5300 on BoE
BoE expects inflation to return to 2 percent target within two years
In another direction, the EUR continues to trade isolated from the recent failed attempts to clinch an agreement between the Greek officials and the Eurogroup. The Greek debt negotiations are set to continue next Monday although opinions regarding the potential outcome remain pretty divided.
The Japanese yen strengthened to the 118.70/75 band from 120.30 vs. its American counterpart following appreciations by the Bank of Japan, deeming further stimulus as unnecessary and counterproductive.
The ‘currency wars’ are back on the headlines after the Riksbank’s monetary policy stepped into the negative ground for the very first time, allowing its repo rate to decline to -0.10% from 0.0%, catching market participants off guard. The Nordic central bank also joined the QE fashion, announcing purchases for SEK 10 billion of government bonds.
Other headlines in Euroland
Eurogroup comes close to agreement on Greece – TDS
GBP/USD back above 1.5300 on BoE
BoE expects inflation to return to 2 percent target within two years