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1 Feb 2016
Central bank comments key ahead of US payrolls – Lloyds Bank
FXStreet (Delhi) – Research Team at Lloyds Bank, suggests that the sentiment remains key in the financial markets, with a busy week of data and events ahead.
Key Quotes
“In terms of central banks we have the RBA overnight (expectations are for unchanged but a dovish bias) and the BoE on Thursday (unchanged also expected). China has kicked off the week’s global manufacturing PMIs with a slightly softer release. We finish the week with the US employment data, with average earnings important here due to the focus on inflation. But with sentiment so important, comments will be a main driver of markets this week too.
Fed Vice Chair Fischer will be listened to closely today, hopefully providing more clarity about how the Fed is thinking after leaving rates unchanged last week. The Iowa caucus in the US may also see late volatility in the USD, with all eyes on the Republican voting and how Donald Trump does. The press conference post BoE Thursday and Governor Carney’s comments will be key after recent dovish statements have seen the rates markets assign a 30% chance of a rate cut towards the end of this year and no rate hike in 2017 now.”
Key Quotes
“In terms of central banks we have the RBA overnight (expectations are for unchanged but a dovish bias) and the BoE on Thursday (unchanged also expected). China has kicked off the week’s global manufacturing PMIs with a slightly softer release. We finish the week with the US employment data, with average earnings important here due to the focus on inflation. But with sentiment so important, comments will be a main driver of markets this week too.
Fed Vice Chair Fischer will be listened to closely today, hopefully providing more clarity about how the Fed is thinking after leaving rates unchanged last week. The Iowa caucus in the US may also see late volatility in the USD, with all eyes on the Republican voting and how Donald Trump does. The press conference post BoE Thursday and Governor Carney’s comments will be key after recent dovish statements have seen the rates markets assign a 30% chance of a rate cut towards the end of this year and no rate hike in 2017 now.”