Their comments follow Thursday’s rate cut to a new record low of 0.25 percent and the launch of stimulus measures worth up to 170 billion pounds – a huge package created to offset the shock from June’s vote by Britons to leave the European Union.
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The Pound to Dollar exchange rate (GBP/USD) is a quarter of a percent higher on the day’s open and is quoted at 1.3154 on the mid-markets.
In bond markets, the BoE rate cut sent US Treasury yields tumbling with some short- and medium-term yields hitting their lowest levels in more than three weeks.
British government bond yields also inched off record lows, and German yields rose after a 5 basis-point tumble following the BOE move.
“Based on our analysis, the payroll growth in July is likely to be pretty strong”, said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank.
The Nikkei index lost 1.9 percent during the week that was marred by a strengthening yen following smaller-than-expected easing measures from the Bank of Japan and disappointment over Prime Minister Shinzo Abe’s stimulus steps.
Economists polled by Reuters expect a non-farm payroll increase of 180,000.
As the dollar recovers, the euro eased to $1.1114 on Thursday and last stood at $1.1131, little changed on the day but down 0.3 per cent on the week. “That should be positive for the dollar”. The broader All Ordinaries index gained 22.20 points or 0.40 percent to finish at 5,585.60.
Sterling climbed 0.2 per cent against the dollar after Thursday’s sharp fall.
Oil pulled back slightly after rallying overnight following a modest stockpile drop at the United States delivery hub for crude futures. This means the cost of public borrowing is low, with interest rates on ten year bonds falling to below 1 cent since the referendum.
But with bets against sterling already at their highest on record, weakening the currency has proved a hard road for speculative investors over the past month, and it remains more than 3 cents above lows hit in early July.
Japanese shares gave up early gains to end flat as investors looked ahead to the U.S.jobs report. Brent crude, a benchmark for global oil prices, added $1.19, or 2.8 percent, to $44.29 a barrel in London.
“Traders will be watching USA nonfarm payrolls closely tonight in order to evaluate the likelihood of a rate hike [in the U.S.] this year”, said Margaret Yang, a market analyst at CMC Markets in Singapore.
The Aussie climbed 0.25% to $0.7649, and Australian shares added 0.5%.
The Bank of England’s cuts on Thursday in its growth forecasts for next year and its hints of more easing to come underline the central case bank analysts have made for the pound to weaken since June’s vote to leave the European Union.
The writers argue that rating the world in terms of developed and emerging markets, among other things, is to hold an erroneous view in tracking the movements of global capital.
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Asian shares joined a rise in global stock prices on Friday after the Bank of England (BoE) launched a potent post-Brexit stimulus campaign, but some caution before a big U.S.jobs report limited gains.
