News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
More View more
Real Time News
  • Speaker Pelosi aiming for $2.4 trillion in stimulus proposal according to aides - BBG
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 1.29% Gold: 0.33% Oil - US Crude: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/vGkrwaFvt1
  • Fragile risk sentiment has continued to benefit the US Dollar, which has taken the title of the preferred safe-haven from the likes of the Japanese Yen and Swiss Franc. Get your market update from @JMcQueenFX here: https://t.co/jAFn7qGcbd https://t.co/nWLD7cSQUO
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.89%, while traders in EUR/GBP are at opposite extremes with 66.41%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fWlXXvQUkT
  • 🇲🇽 Interest Rate Decision Actual: 4.5% Expected: 4.25% Previous: 4.5% https://www.dailyfx.com/economic-calendar#2020-09-24
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.97% Wall Street: 0.92% France 40: 0.66% FTSE 100: 0.62% Germany 30: 0.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SmPAA5CRPL
  • RT @FinancialJuice: US JUDGE: THE US MUST DELAY TIKTOK DOWNLOAD BAN OR FILE LEGAL PAPERS BY FRI. 2:30 PM ET DEFENDING THE BAN. - COURT ORDE…
  • Fed's Barkin says markets appear to be more concerned about inflation being low, not high $SPX $XAUUSD
  • Heads Up:🇺🇸 Fed Williams Speech due at 18:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-24
  • Heads Up:🇲🇽 Interest Rate Decision due at 18:00 GMT (15min) Expected: 4.25% Previous: 4.5% https://www.dailyfx.com/economic-calendar#2020-09-24
FPC Record of November Meeting Signal Emerging Markets Risk

FPC Record of November Meeting Signal Emerging Markets Risk

2015-12-09 11:03:00
Oded Shimoni, Junior Currency Analyst
Share:

Talking Points:

  • Emerging markets risks are in sharper focus
  • Market reaction to any decision by the FOMC is difficult to predict
  • Downside risk to Euro-area remain

The BoE’s Financial Policy Committee (FPC) meeting record released today emphasized emerging markets risks to the UK’s economy. The responsibility of the committee is mainly to identify systemic risks in order to protect the UK’s economy. The Committee met on November 25 to form its outlook for financial stability in order to decide on the proper policy in light of the risks identified.

The FPC remarked that they made no new recommendations, and that the prior reccomendations relating to stress testing had been implemented. The committee identified the main risks facing the financial system in the United Kingdom as emerging market economies (EMEs); financial market fragility; property markets in the United Kingdom; United Kingdom’s current account deficit; and cyber risk. The countercyclical capital buffer rate for UK exposures was set at 0%.

Highlights from the record:

  • Risks in relation to emerging market economies are in sharper focus due to slowing activity in Q2. Specifically, risks to UK financial stability is associated with possible build-up in emerging market debt.
  • China outlook for growth remained unchanged because of monetary and fiscal stimulus.
  • November saw net outflows from EME’s, presumably due to market expectations for an increase in the US Federal Funds rate.
  • Market reaction to any decision by the FOMC to increase interest rates remains difficult to predict.
  • Downside risk to Euro-area remain, partly due to strong trade links with EMEs.
  • Market liquidity risks are not being fully reflected in the prices of some financial assets.
  • Current account deficit in the UK could lead to a sudden adjustment in capital flows or a depreciation of the exchange rate, with adverse consequences for UK financial stability.
  • Resilience of the UK’s banking system continues to strengthen, reflecting the introduction of higher regulatory requirements. The banking system would have the capacity to maintain its core functions in a stress scenario such as the one in the 2015 stress test.
FPC Record of November Meeting Signal Emerging Markets Risk

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES