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Will Carney talk up the pound?

business-articlesWill Carney talk up the pound?
  • EUR may be supported by Eurozone production figures
  • Will Carney speech aid GBP?
  • RBA set to publish latest Stability Review
Euro may strengthen on production figures

The euro may tick higher again today as the Eurozone publishes its latest industrial production figures.

Economists expect this morning’s data will show that production rebounded from -1% to 0.1% in February
January’s decline in production was attributed to a sharp drop in energy output, with analysts suggesting that this will have rallied as demand picked up again thanks to the colder weather in February.

However with the output growth still expected to be fairly weak the euro may find that its potential gains from the data are limited.

Carney Speech in Spotlight

The pound may show limited movement during the European session today as investors await a speech by Bank of England (BoE) Governor, Mark Carney later this evening.

Markets will be hoping that Carney will drop a few more hints regarding the BoE’s plans for interest rates over the coming months, particularly in respect to a possible hike in May.

However with many investors having already priced in a hike next month the attention may instead be on the bank’s plans for the remainder of 2018.

Sterling sentiment could tumble if Carney appears reluctant to discuss the possibility of there being up to two rate hikes this year.

RBA Stability Review may prompt movement in AUD

The Reserve Bank of Australia (RBA) is set to publish its biannual Financial Stability Review later tonight, with movement in the Australia dollar likely to be dictated by the Bank’s economic outlook.

The RBA previously highlighted concerns about ‘potential risks’ in the investment property market and the ‘Aussie’ could tumble if the bank strikes a similar tone in today’s review.

However some analysts will be hoping for a more optimistic tone from the bank as recent commentary would suggest policymakers are becoming increasingly confident in their economic outlook.

Upcoming Data

Thursday, 12 April, 2018
10:00                     EUR Industrial Production
20:00                     GBP BoE Carney Speech

Friday, 13 April, 2018
02:30                     AUD RBA Financial Stability Review
 
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

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