32 month high in GBPUSD— World First (@World_First) January 23, 2014
$GBPAUD new multi-year high with that break above 1.8750
— John Kicklighter (@JohnKicklighter) January 23, 2014
If you repeat it enough, the market will listen. At least that is what the Bank of England is hoping. The UK sits 0.1% away from the unemployment rate threshold at which forward guidance dictates that their central bank would start to consider raising rates. But markets have thrown the word consider aside to side and are breaking out with volatility. With the GBP ripping across the board and the $FTSE falling lower, you have to believe that all the markets are trading on new rate hike expectations when just 12 months ago we were talking about raising quantitative easing. This hawkish change in sentiment is certainly a fundamental change that even technical traders are paying attention to.
- UK unemployment rate falls to 7.1% (The Guardian)
- Ashraf Laidi on SkyNews – January 22, 2014 (YouTube) [VIDEO]
- GBP higher on jobs while CAD gets spanked on disinflation fears (World First)
- UNEMPLOYMENT TUMBLES – A NICE KIND OF HEADACHE FOR THE BANK (David Smith’s EconomicsUK.com)
- So much for guidance: Falling unemployment is good news for everyone except Mark Carney (The Independent)
- Has Bank Of England’s Forward Guidance Backfired? (London South East)