Archive for Bank of England

What are Central Banks Expected to do in 2012?

The New Year has begun and it is important to see what the market is pricing in for central banks this year. As you may know, central bank rate hike expectations change often but as of last week, most central banks are expected to keep monetary policy unchanged in the coming year but one [...]

FOMC, ECB, RBA Meetings: What is Priced in?

The Federal Reserve, European Central Bank and the Reserve Bank of Australia have monetary policy meetings scheduled this week and some investors expect these central banks to change monetary policy. Here’s what the market is pricing in according to interest rate futures. You can compare them with the Central Bank expectations back in September. [...]

What Investors Expect Central Banks to Do in 2011 and 2012

Central Bank Interest Rate Expectations can and do change based upon economic and market developments. The last time I provided updated CB expectations was in July (yes, I apologize for being tardy) but since then we have seen major changes in investors expect central banks to do this year and next.
Here are the [...]

Fed: Data Shows Mkt Pricing in Q2 Rate Hike?

It has been a while since I provided updated numbers for the market’s rate hike expectations and I will chalk it up to my travels! Rate expectations are always changing and a lot has happened over the past month. Its always important to keep track of them because they reflect what investors are [...]

New BoE Member Broadbent: What’s His Story?

At the end of this month, the Bank of England will add a new member to their Monetary Policy Committee - Ben Broadbent. He will replacing Andrew Sentance who has voted for an interest rate hike since the beginning of the year. Sentance was the most hawkish member of the MPC, having just [...]

Forex: Major Changes to Rate Hike Expectations

Over the past 3 weeks, central banks around the world have made a number of comments that have affected rate hike expectations. On Jan 27th, I showed where rate hike expectations were at the time and since then a number of interesting changes have occurred.
First, the market is now pricing in a 25bp rate [...]

Chart: BoE Inflation Report Rarely a Nonevent for GBP

The Bank of England’s Quarterly Inflation Report is one of the most important pieces of documents released by the central bank. The Inflation Report includes the central bank’s latest growth and inflation forecasts and frequently telegraphs their plans for monetary policy. Although the Monetary Policy Committee has not changed interest rates in nearly [...]

What is the Shadow BoE Monetary Policy Committee?

Since the beginning of the month, the British pound has staged a dramatic rally against the U.S. dollar on the belief that the Bank of England will have to raise interest rates very soon. In slightly more than a month, the GBP/USD has rallied from a low of 1.54 to a high above 1.6250. [...]

British Pound: 5 Reasons Why the Pound is Being Pounded

With mixed to slightly better than expected U.K. economic data, traders may be scratching their heads about why the British pound has collapsed more than 300 pips this morning. Here are a couple of reasons:
1. Britain’s Prudential announced plans to buy AIG’s Asia operations for $35.5 billion in cash and stock - since this [...]

The U.S. Dollar Breakdown and the Charts that Matter

Dollar bashing has driven the U.S. dollar to an 11 month low against the Euro and 1 year low against the Australian dollar. If you have caught my interviews on CNBC and Bloomberg, you would know that I have been bearish dollars and bullish Aussies and Euro for the past 2 months. Now [...]