01/11/16 - Carney Stays On Until 2019

GBP

Mar Carney has said he will step down in June 2019 as Governor of the Bank of England. Mr Carney said the move 'recognised the importance to the country of continuity' during brexit negotiations. Prime minster Theresa May said Mr Carney's decision to stay for an extra year would provide "continuity and stability as we negotiate our exit from the European Union".

Chancellor Philip Hammond also said he welcomed Mr Carney's decision to stay an additional year. He said it would enable Mr Carney to continue his "highly effective leadership of the Bank through a critical period for the British economy as we negotiate our exit from the European Union".

Mr Carney had originally said he would announce his decision on whether he planned to continue until 2021 by the end of the year. But with conflicting newspaper reports over how long he would stay on in the role, pressure was mounting on the governor to make a decision.

 

USD

The U.S. dollar rose against a basket of major currencies on Monday on reduced worries over the FBI's investigation of more emails linked to Hillary Clinton's use of a private server, while persistently low Japanese government bond yields also boosted the greenback.
 
The dollar index .DXY, which measures the greenback against a basket of six major currencies, was last up 0.27 percent after hitting an eight-day low on Friday following news of the FBI's probe, with the index on course for a monthly gain of 3.4 percent, its best since January 2015.

News of the probe hurt the dollar since Clinton is viewed as the candidate of the status quo, and a win for the Democratic candidate in next week's U.S. presidential election is generally seen by analysts as likely to be positive for the dollar.

A Clinton win is also viewed as clearing the way for the Federal Reserve to raise interest rates in December. There is greater uncertainty over what a victory for Republican candidate Donald Trump might mean for U.S. foreign policy, international trade deals and the domestic economy.

 

Key Announcements

10:30 AM – GBP : Manufacturing PMI, forecast at 54.6 from a previous of 55.4