Fisher: Bank of England Should Keep Purchasing Assets Fisher Says QE Strengthens the Recovery Bank of England economist Paul Fisher backed the central bank’s stimulus program, saying it strengthens the recovery. Fisher stated that a number of our policies had very powerful effects on the recovery phase,” adding that things would have been much worse if we hadn’t stuck to our guns.” BoE Governor Mark Carney has recently stated that the central bank needs to provide a lot of stimulus, but that stimulus can create risks” The central bank has recently decided to continue purchasing assets at a pace of £375bn. Further stimulus may weaken the pound relative to the dollar. This could benefit traders who placed short positions on the GBP/USD. The currency pair just reached its lowest level (1.7021) since June 30 this morning. According to PwC, the U.K. economy is expected to grow by 3.0% in 2014. In China, the HSBC Manufacturing Purchasing Managers’ Index rose to 52.0 in July. The index, which provides an overall view of activity in the manufacturing sector, came higher than the expected 51.0. Following this development, the AUD/USD reached its highest level (0.9469) since July 2. This benefited traders who placed long positions at the beginning of today’s session. UPCOMING EVENTS 2014-07-24 09:00 GMT European Union, Manufacturing PMI 2014-07-24 09:30 GMT United Kingdom, Retail Sales (MoM) 2014-07-24 15:00 GMT United States, New Home Sales EUR/USD EUR/USD is traded at 1.3468 ahead of the Eurozone Services Purchasing Managers’ Index (PMI). The index, which measures the activity level of purchasing managers in the services sector, is expected to stand at 52.7. A higher than expected reading would be bullish for the euro and may strengthen the currency pair. Our intraday recommendation Buy the pair above 1.3441 towards 1.3461 & 1.3481. Below 1.3441 sell towards 1.3421 & 1.3401. USD/JPY USD/JPY is traded at 101.45 as traders await the New Home Sales. The figure, which measures the number of homes sold in the U.S. during the previous month, is expected to stand at 479K. A lower than expected reading would be bearish for the dollar and may weaken the currency pair. Our intraday recommendation Sell the pair below 101.46 towards 101.26 & 101.06. Above 101.46 buy towards 101.66 & 101.86. GBP/USD GBP/USD is traded at 1.7042 ahead of the U.K. Retail Sales (MoM). The figure, which measures the change in the value of sales at the retail level, is expected to stand at 0.3%. A higher than expected reading would be bullish for the pound and may strengthen the currency pair. Our intraday recommendation Buy the pair above 1.7029 towards 1.7049 & 1.7069. Below 1.7029 sell towards 1.7009 & 1.6989. AUD/USD AUD/USD is traded at 0.9444 ahead of the Initial Jobless Claims. The figure, which measures the number of individuals who applied for unemployment benefits for the first time during the past week, is expected to stand at 308K. A higher than expected reading would be bearish for the U.S. dollar and may strengthen the currency pair. Our intraday recommendation Buy the pair above 0.9432 towards 0.9452 & 0.9472. Below 0.9432 sell towards 0.9412 & 0.9392. Oil Oil is traded at 102.83 as traders await the U.S. Manufacturing Purchasing Managers’ Index (PMI). The index, which measures the activity level of purchasing managers in the manufacturing sector, is expected to stand at 57.5. A higher than expected reading would have a bullish effect on the price of oil. Our intraday recommendation Buy the commodity above 102.86 towards 103.06 & 103.26. Below 102.86 sell towards 102.66 & 102.46. Thank you for reading, Have a great trading day
Posted on: Fri, 25 Jul 2014 21:05:43 +0000
Trending Topics
© 2015