“Carney said these banks had ‘no excuse” not to pass them on.
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In response Carney said they will “take whatever action is needed” including boosting the Term Funding Scheme (TFS) a programme to help banks keep lending to businesses and individuals: This timely, coherent and comprehensive package of measures is appropriately sized, given the scale of the shock, uncertainties about the degree of adjustment and the relatively limited data.
The pound fell to $1.3134 from $1.3317 on Wednesday.
The US Treasury 10-year note yield was little changed at 1.502 per cent after dropping 25 basis points overnight during a broad post-BoE rally in bond markets, which took the 10-year gilt yield to a record low of 0.639 per cent. Cash earnings rose 1.3 percent compared with a year earlier, compared with a 0.1 percent decline in May.
“But slashing the rate to historic lows and extending the existing QE initiative to £435bn in total is going to unleash more catastrophic damage on pensions, pension funds and, potentially, the UK’s long-term sustainable economic growth”.
The bank’s monetary policy committee (MPC) has cut the rate from 0.50 percent to 0.25 percent, the lowest since the bank opened in 1694. Facebook rose $1.85, or 1.5 percent, to $124.36, and Broadcom gained $2.88, or 1.8 percent, to $166.99. Tokyo advanced 0.3 percent to 16,300.75 and Seoul’s Kospi rose 0.6 percent to 2,011.59.
USA crude was down 0.2 per cent at US$41.83 a barrel after surging almost 3 per cent overnight.
Soft second-quarter U.S. GDP data and some other mixed data have dented the dollar as they reduced expectations that the Federal Reserve will raise rates this year. The company also cited terrorism as among the events that are making it harder to predict how its business will perform in the near future. Its stock lost $5.65, or 8.1 percent, to $63.84.
NOT A BIG SPLASH: Theme park operator SeaWorld said its revenue fell in the second quarter as guest numbers from Latin America dropped off amid economic turmoil there and bad weather. Its stock gave up $2.02, or 13.6 percent, to $12.82. With that being said and with so many economic indicators continuing to focus on the negative impact following the unexpected European Union referendum, momentum for the GBPUSD over the medium and longer term still appears heavily in favour of sellers. Germany’s DAX was up 0.7 percent and France’s CAC 40 gained 0.5 percent.
JAPANESE WAGES: Wage growth rebounded in June but the increase appeared to be too slow to achieve the Bank of Japan’s goal of generating 2 percent inflation.
Gold was up 0.2 percent at $1,364.20 an ounce ahead of the payrolls report, heading for a 1 percent gain for the week.
The dollar index was steady at 95.752 after gaining 0.3 percent on Thursday.
A government report on Friday is expected to show that U.S. non-farm payrolls rose by 180,000 in July, while the unemployment rate is expected to fall to 4.8 percent from June’s 4.9 percent, according to economists polled by Reuters.
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The greenback fetched 101.24 yen compared with 101.22 yen in United States trade, while the euro was at 1.1132 and 112.70 yen against 1.1131 and 112.66 yen. We actually need the GBPUSD to close above 1.35 for the possibility of a bullish correction in the Pound to be enabled and back towards the levels last seen on the evening of the European Union referendum, otherwise and as stated above momentum for the GBPUSD over the medium and longer term is tipped in favour of sellers.
