Daily Market Report 11/09/15 GBPThe Pound strengthened yesterday afternoon after Bank of England Governor Mark Carney said the UK’s economic outlook remains healthy and market turmoil related to China’s slowdown hasn’t shaken their view that the time for a rate increase is approaching. At their September meeting, the nine-member Monetary Policy Committee said it’s too early to draw clear conclusions about developments overseas, a sign they remain focused on withdrawing emergency GBPThe Pound strengthened yesterday afternoon after Bank of England Governor Mark Carney said the UK’s economic outlook remains healthy and market turmoil related to China’s slowdown hasn’t shaken their view that the time for a rate increase is approaching. At their September meeting, the nine-member Monetary Policy Committee said it’s too early to draw clear conclusions about developments overseas, a sign they remain focused on withdrawing emergency stimulus that’s been in place since 2009. While the panel voted 8-1 to keep the key interest rate at 0.5 percent, with only Ian McCafferty dissenting, economists again forecasted a BOE rate increase in the first quarter of next year. The BOE also stuck to its view that inflation will start to pick up around the turn of the year, though it noted that a drop in oil prices had raised questions about the near-term outlook. USDThe US again posted strong jobs figures with fewer Americans lining up last week to file for jobless benefits, highlighting the persistent strength of the labour market. Claims for unemployment insurance fell by 6,000 to 275,000 in the week ended Sept. 5, a level economists associate with a healthy labour market as steady demand persuades employers to retain workers. What’s more, the unemployed have a greater chance of finding work after a report Wednesday showed a record number of job openings in July. Key Announcements 13:30 – USD – Producer Price Index (PPI) forecast to decline to -0.1%13:30 – USD – Core PPI forecast to decline to 0.1%15:00 – USD – Preliminary University of Michigan survey is forecast to fall.
