Bank of Carney open for business

8 August, 2013

Ashley Finill

Yesterday saw the BoE governor Mark Carney speak at the UK parliament regarding bank interest rates in the UK. Interest rates will not be raised and will remain at 0.5% until the unemployment rate has lowered to 7% which is a long way off as unemployment in the UK currently stands at 7.8%. Throughout his speech high volatility was seen in the markets. The first half of the speech saw the Pound drop off by a cent against the Euro whilst the second half saw the Pound gain significant strength improving by two cents against the Euro. Yesterday bought a great day to trade on the markets as we saw the pound gain 3 cents against the US dollar the best since 19th of June 2013 and the pound gaining a two week high against the Euro.

Coming up later today the European central bank publishes their monthly report which has the potential for high volatility as we saw yesterday with the Mark Carney speech. We could see a reverse of what happened yesterday regarding the pound strengthening against the Euro or with a negative outcome from the ECB report could see the pound continue to gain. Elsewhere the employment rate change was released overnight in Australia posting a much lower figure than expected. The large negative figure means it is less likely there will be a further interest rate cut and as such the dollar gained some strength.

Tomorrow sees data coming out of the UK with goods trade balance being released. Later in the day Canada announces their unemployment rate.

Be sure to stay in touch with your broker at Currency Index for your needs to get sending money abroad.