05/09/2018 – Carney To Extend His Stay


The pound recouped some losses on Tuesday after Bank of England Governor Mark Carney said he was ready to stay in his job beyond his planned leaving date, but concerns over Brexit kept a lid on the currency’s gains.

On Tuesday the currency inched up from a one-week low against the dollar as Mark Carney suggested to a parliamentary committee he was willing to remain on as governor to ease Britain’s economy through its departure from the European Union.

The purchasing managers’ index (PMI) dropped to a three-month low of 52.9 last month from July’s 55.8, below all forecasts. The slide follows the weakest manufacturing PMI in more than two years on Monday, but analysts will not have a broad picture of the economy until figures for the much larger services sector are released on Wednesday.


The dollar rose broadly on Tuesday as concerns about a possible escalation in trade conflict between the United States and China boosted safe-haven demand for the greenback and as investors dumped emerging market currencies.

Chinese state-owned banks have swapped dollars for yuan in tenors ranging from a month to a year in the offshore forwards market in recent days, traders said on Tuesday, providing some support for the yuan as markets braced for a potential major escalation in the U.S.-China tariff war.

Meanwhile, U.S. – Canada trade talks ended on Friday with no deal to revamp the North American Free Trade Agreement after the mood soured, and President Donald Trump notified Congress of his intent to sign a bilateral trade pact with Mexico.

Key Announcements

09.30: Services PMI; Forecast at 53.9 against previous of 53.5