• BOE Injects A Further £100 Billion, Discusses Negative Rates

    APF Increases to £745 Billion The Bank of England yesterday stepped up its fight against the economic downturn occurring as a result of the COVID-19 lockdowns. The BOE announced an additional £100 billion in purchases to be made as part of its quantitative easing program. With this new addition, the BOE’s Asset Purchase Facility (APF) […]

  • BOE Expected To Announce Further Stimulus

    The Bank of England convenes for its June monetary policy meeting this week and with the UK economy shown to be suffering greatly as a result of the COVID-19 lockdowns, the bank is widely expected to announce further measures. With rates sitting at record lows of 0.10%, the market is placing the greater odds on […]

  • The Friday Forex Takeaway – Episode 38

    Key Points from This Week Fed Delivers Warning Message At the June FOMC this week, the Fed held its monetary policy at current levels. However, the statement and comments following the meeting were decidedly dovish with Fed chairman Powell warning the markets that the economic recovery from the covid-19 crisis would not be quick or […]

  • The IndeX Files 26-05-2020

    Vaccine Hopes Boosting Risk Sentiment Global equities benchmarks are trading with renewed upside momentum this week amidst a broad improvement in risk sentiment. Investor appetite is returning as the global COVID-19 deaths continue to decline, suggesting that hopefully the worst of the virus is now passing. Sentiment has been further boosted this week by news […]

  • China Abandons GDP Growth, Sounds Gloomy on Outlook. Will the Bearish Impulse be Sustainable?

    Chinese government made “injected” some reality into stock markets today, saying that they don’t’ promise any concrete GDP numbers for 2020, mentioning also the significant uncertainty because of which the impact of a number of factors is difficult to predict. Among those factors is probably a second wave of Covid-19 outbreak. One important sign of […]

  • Manufacturing PMIs Recovering in May

    Eurzozone Factory Activity Rebounding On the back of the heavy downtrend in data seen over the last two months, there are finally some positive signs emerging in the Eurozone. The flash manufacturing PMI for May rose to 39.5 from the prior month’s record low of 33. The reading, which was also higher than the 38 […]

  • UK Data Goes From Bad To Worse

    Inflation Lowest Since 2016 UK inflation fell by almost half last month, tumbling from 1.5% in March to just 0.8% in April as the COVID-19 fallout continues to wreak havoc on the economy. The decline has taken inflation back to its lowest level since mid-2016 and highlights the heavy downside drag being caused by the […]

  • The Friday Forex Takeaway – Episode 34

    Key Points from This Week RBNZ Signals Negative Rates Likely The RBNZ increased the size of its QE program at its May monetary policy meeting this week by nearly double from $33 billion to $60 billion. Warning over the continued impact of the global economic downturn the RBNZ also warned that negative rates could be […]

  • BOE Warns Of Historic Economic Crash

    Unprecedented Recession The Bank of England had a stark message for the market when it met for its May monetary policy meeting this week. Despite holding policy unchanged at current levels, the BOE warned that the UK economy is due for an “unprecedented” crash, not seen since 1706. While the decision to keep rates on […]

  • The Friday Forex Takeaway – Episode 33

    Key Points From This Week US/China Tensions Increase Relations between the US and China have deteriorated once again this week in the wake of accusations made by the US against China with both Trump and secretary of state Mike Pompeo claiming to have seen evidence that COVID-19 was created in a Chinese lab. Markets had […]

  • The Friday Forex Takeaway – Episode 32

    Key Points From This Week BOJ Eases Further With the COIVD-19 crisis keeping many Japanese cities under lock-down, the economy continues to struggle. In a bid to address this, the BOJ took the unprecedented step this week of announcing that its bond purchase scheme will now be run at an unlimited level. Bond purchases were […]

  • BOE Warns of UK Recession Over COVID-19

    The Bank of England maintaining policy at current levels at yesterday’s March meeting. On the back of two unscheduled rate cuts this month, as well as the restarting of QE, the meeting was not expected to see a further adjustment and instead, focus was on the bank’s assessment and outlook. BOE Expresses Concern For Economy […]

  • The Friday Forex Takeaway – Episode 26

    Key Points From This Week Fed Makes Historic Rate Cut In response to the escalating COVID-19 outbreak, the Fed made the unprecedented move of cutting interest rates to 0% at the start of the week. In another unscheduled move which came ahead of the March FOMC meeting, the Fed noted that it will also increase […]

  • BOE Slashes Rates As London Avoids Lockdown

    London Avoids Lockdown It was a strange day in the City yesterday as many were expecting the PM to announce a 15 day shutdown in London. Media reports had been pointing towards such an announcement all week, citing source comments from within government. However, during the PM’s daily briefings, such a lockdown was not announced […]

  • The Friday Forex Takeaway – Episode 25

    Key Points From This Week Bank of England Cuts Rates The BOE became the latest central bank in the G10 space to lower its rates this week. Echoing the Fed, the BOE announced a surprise rate cut of 0.5% midweek in response to the ballooning COVID-19 situation. With the UK very shortly to go into […]