Pending military action may lead to a volatile week
Both Europe and the US were open yesterday but not a great deal to report on the economic front. Durable goods orders out of the US yesterday were disappointing. We have consumer confidence figures from the US out this afternoon around 3.00pm so we’ll be keeping an eye on what they have to offer. Most of the news coming through seems to be political with Syria at the top of the agenda and the concern the West will start military action. The Syrian government has now agreed to allow UN inspectors in to investigate allegations of a suspected chemicals weapons attack near Damascus.
Mark Carney will face market scepticism this week in Nottingham when he addresses the business community and explains why he is intending to keep the interest rate at its current level until 2016. The speech will be followed by a press conference where he’ll answer questions and respond to market doubts over his strategy. Since he gave us his forward guidance speech we have seen both Sterling strengthen and gilts rise, so the market will most certainly be keeping a close watch on what he has to say tomorrow from 11.45am.
GBP/EUR presently trading at 1.2328. GBP/USD around the 1.5510 mark and the EUR/USD at 1.3340.