NY Open: Carney crushes cable NY Open: Carney crushes cable NY Open: Carney crushes cable

NY Open: Carney crushes cable

Forex
MO
Michael O’Neill

FX Trader, Loonieviews.net

Britney Spears made a hit of “Oops, I did it again” in 2000; 18 years later, Bank of England Governor Mark Carney performed his own thematic cover, leaving sterling traders nearly one Big Figure lower versus the greenback after the BoE governor's post-'Super Thursday' presser. 

The BoE raised UK interest rates from 0.50% to 0.75% as was widely expected. The decision was unanimous, which was a bit of a surprise. The existing QE program was unchanged.  The monetary policy summary was upbeat, predicting GDP growth of 1.75% over the forecast period and projected further tightening ahead.

Initially, GBPUSD soared, spiking from 1.3070 to 1.3127... then Carney started talking.

He said “monetary policy needs to walk not run to stand still”. GBPUSD traders heard “future rate hikes will be at a slow pace.” GBPUSD collapsed from 1.3127 to 1.3017 before profit-taking lifted prices to 1.3055.

The US dollar enjoyed a firm opening in New York this morning with gains across the board except against the Japanese yen.  The US threat for 25% tariffs on Chinese imports, and yesterday’s modestly hawkish Federal Open Market Committee statement, saw USD flatten out from its overnight gains (except, of course, against the pound).

FX markets look like they are willing to sit on the sidelines until tomorrows US nonfarm payrolls data. Analysts are predicting a gain of 190,000 jobs. Some traders are expecting an upside surprise after Wednesday’ strong ADP employment change report.

US economic reports did not have any impact on FX trading. Jobless Claims were slightly better than forecast at 218,000 (forecast 220,000)  while June Factory orders rose 0.7% month-on-month, as expected.

Wall Street is trading with a confused tone. The Dow Jones Industrial Average is down on trade risks, the S&P 500 is flat, and Tesla (TSLA: NASDAQ) helped lift the Nasdaq. Oil prices surged with WTI climbing from $67.26 to $68.16.

GBPUSD hourly noting modest downtrend line
GBPUSD hourly noting modest downtrend line (source: Saxo Bank)

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.