Banking System Breaks
As the markets were relatively quiet yesterday, Mark Carney was probably looking forward to a relatively quiet day. Unfortunately for him and the thousands of people involved, the CHAPS system decided to crash after “routine weekend maintenance”. This meant for 9 hours no payments could be made via the CHAPS system which of course affected house purchases and payments to Currency UK. The work around for this was the faster payments system and all was up and working after hours last night. Today we should see an announcement of an independent enquiry as to why this happened and confirmation that the worst software issues since 2007 will not be repeated.
Sterling continued to recover against the US Dollar yesterday as the trend looks to have run out of a bit of steam. It seems that the uncertainty has already been priced into the market as the pair is so oversold. We heard Dallas Fed President Richard Fisher contradict James Bullard’s recent comments about the end of quantitative easing (QE). Fisher said that the time was right for the end of QE as the underlying economy is doing well although he refused to speculate on the timing of the first rate hike.
It’s another quiet day on the data front today with the US house sales being the major figure as we look ahead to the rest of the week when things should start getting more interesting.