General Update – 20/01/16 – by Michela Jaccarini
January 20, 2016Two important currencies to look out for today are GBP and CAD.
GBP saw positive CPI news however soon after Bank of England Governor Mark Carney’s speech provided little good news. It was stated that interest rates would not be hiked any time soon due to the slowdown in the world’s market. Particular emphasis was placed on the current slump in oil prices (which has lowered inflation) and the slowing in UK growth. There is no specific time when interest rates will be raised but everything will be done at the right time. This morning negative news with regards to the earnings data hit the cable price again, sending it down to a price of 1.41216, a price it hasn’t been at since March 2009.
CAD on the other hand faces an interest rate decision today at 15.00 (GMT), following which a speech will be made at 16.15 (GMT) by Bank of Canada Governor Stephen Poloz. It will be interesting to see the decision and following news, and how all this will affect the currency.
Oil has also seen another hit; fairly negative Chinese news issued yesterday relating to Industrial Production and GDP could be a result of this. It is currently trading at 28.76, after having hit a new low of 28.45.
