Market Wrap: Pound Volatility Stoked by BoE and Brexit Chatter
Daily FX analyst Martin Essex talks to us about this volatile week in which Sterling has been all over the place after the Bank of England’s chief economist Andy Haldane went from dove to hawk in contrast to Mark Carney who is keen to keep Britain’s interest rate stable in these times of uncertainty. His intervention is likely to heighten tensions between Haldane and Carney considering both are members of the MPC and seem to have different views on the best economic path for the UK.
The price of oil has also had a tough week with the oversupply issue dominating the direction on the chart. But as of Friday afternoon, the price has ticked higher on confidence the world’s largest producers will stick to output cuts.
In terms of next week Germany’s IFO business confidence report will be key as well as the GFK sentiment publication. Martin explains how this could impact both the indices and the forex market. European inflation is also on the agenda and a lower figure will take the heat off of the ECB as it continues its quantitative easing program.
And as Brexit negotiations continue Sterling will be at the mercy of any noise coming from the talks between Prime Minister Theresa May and EU policy makers.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.