10/04/2017 - Mark Carney Calls for Contingency Plan from Banks

GBP

In a speech in London on Friday morning, Bank of England governor Mark Carney encouraged banks to put contingency plans in place for all possible Brexit outcomes. In his first comments since Article 50 was triggered, Carney said that the transition poses a risk to financial stability, and warned that if it leads to reduced cooperation on regulation and other issues, this will have a negative impact on the economy and jobs.

Describing better international coordination on regulation as taking the “high road,” he said this would lead to “more jobs, higher sustainable growth and better risk management across the G20”. Carney  warned “there is another path, the low road where trust and cooperation diminish, fragmentation hardens, capital flows are disrupted and trade and innovation are curtailed.”

U.K. manufacturing and construction shrank in February, adding to concerns that the economy lost momentum in the first quarter of 2017. Factory output fell 0.1 percent from January, according to the Office for National Statistics. Total industrial production declined 0.7 percent as a result of warmer than normal weather conditions reducing demand for energy. Construction output dropped 1.7 percent, the most in almost a year.

USD

The latest non-farm payroll figure released on Friday afternoon showed that US job growth slowed considerably with just 98,000 jobs added in March, against predictions of 180,000. The unemployment rate fell to 4.5 per cent, holding at five per cent or below for the past 18 months - representing full employment for the longest period since the financial crisis. February’s figure showed an increase of 235,000 jobs, while January showed 227,000.
 
This figure has caused concern, following March’s interest rate hike and rising inflation. Uninterrupted jobs growth since August last year, together with rising inflation contributed to the hike, with the recent consensus being for a further two hikes this year.

Key Announcements 

21:00 - USD:  US Fed Chair Janet Yellen Speaks