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Stressful Week for Carney

Stressful Week for Carney

Good morning and it was lovely to actually see the sunshine in the UK this weekend. On Friday,  data released in the US, showed that US Nonfarm payrolls grew by 175K in February, following the January increase revised up to 129K. This was above market consensus of 149K.

The Unemployment Rate climbed to 6.7% from 6.6%, against forecasts of remaining unchanged.

There are a few figures out of Europe this week which could well start to dampen the overwhelming optimism the market got from the recent ECB meeting. The scheduled for release French industrial production may only support these fears as the economy is still on the brink of falling in to recession again.

In the UK, this week will see Bank of England Governor Mark Carney face his toughest public testimony to date as he is grilled by lawmakers over the suspension of an employee and concerns that the BoE knew of concerns the foreign-exchange market was being rigged almost eight years ago. The central bank said last week that an internal review has found no evidence so far that staff were involved in collusion. The controversy marks a major test of Carney’s leadership after he took over the BOE less than a year ago and began overhauling its monetary policy, communications regime and structure. Carney, along with Markets Director Paul Fisher, is due to appear before Parliament’s cross-party Treasury Committee at noon in London to answer questions on the foreign-exchange inquiry and the central bank’s governance. That session will follow hearings at 9:30 a.m. on the BOE’s Inflation Report and at 11 a.m. on currency unions and Scottish independence.

 

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