bank of canada interest rate announcement
Worldwide currencies to look out for
- The Bank of Canada will announce today at 2.00 pm will publish their interest rate decision, It is widely expected that the BOC will decide to remain the interest rate at 1.0%
- UK’s NIESR GDP estimate is announced today at 3.00 pm, the UK’s NIESR GDP previous figure was 0.6% and although the figures are not the official release the report is a credible and can influence monetary policy, particularly important with tomorrow’s BOE meeting.
- The Fed Beige Book is announced at 7.00, this will give a clear picture of how the US economy performing in each sector.
- The Swiss National Bank sets a minimum rate against the euro of 1.20 which sees selling of the Swiss franc and a drop of 10% - staggering movements against major currencies. The Swiss National Bank will buy unlimited amounts of currency to keep CHF weaker, but how much money do they really have?
- Italy still has to refinance a great deal of more debt within the next three months; this is as the ECB winds down its asset buying programme on Spanish and Italian debt.
- Global banking regulators have indicated that they could be prepared to lessen capital liquidity ratios for the more solid banks in the hope of easy liquidity issues.
- Ailing Bank of America has posted that it feels the UK could be in line for yet more quantitative easing.
- US banks have warned that the attacks sustained from regulators and reform lobbyists represent the greatest threat to the nation’s recovery. Analysts asset that banking reforms on the table by the US government could push the country towards recession.
- The Swedish Central bank keeps its key note rate at 2%
IN THE UK
Sterling jumps from 1.26 to 1.36 overnight on the back of SNB moves to peg.
- Sterling drops a fraction on the back of European GDP meeting expectations. The low of the day was seen at 1.1348 following peaks just above the 1.14 level.
- The return to US trading after Labour Day saw red across the STOXX 600, and the pound loose value against the green back – prices move to below the 1.60 level, with a low of 1.5944.
- The CBI urges the British Government to address, if not correct, its growth expectations. Former Chancellor Alistair Darling asserted that the UKmay not see satisfactory growth until 2013.
- The UK posted flattened retail sales figures for August in the lead up to what promises to be a boom September for the high street. Traditionally September represents the second highest sales month outside the Christmas period.
- The market shows its distrust of both UK and European banks as HSBC join the list of lenders posting disappointing figures. Sovereign debt is the biggest worry for investors and portfolio managers.
Current Spot Rates (9.00am)
USD EUR AUD CAD CHF DKK NOK HKD SEK ZAR JPY
GBP 1.5985 1.1349 1.5059 1.5773 1.3690 8.4515 8.5202 12.4630 10.17 11.33 123.285
USD 1.4077 0.9421 0.9867 0.8564 5.2871 5.3301 7.80 6.36 7.09 77.125
EUR 0.7100 1.3269 1.3898 1.2063 7.4469 7.5074 10.98 8.96 9.98 108.631
Key Support and Resistance Levels
GBPUSD 1.5592 1.5758 1.5849 1.6106 1.6272 1.6363
GBPEUR 1.1152 1.1224 1.1305 1.1458 1.1530 1.1611
EURUSD 1.3584 1.3777 1.3888 1.4192 1.4385 1.4496