May 16, 2012

The Bank of England stole the headlines this morning as it delivered its second Inflation Report of the year. Its message was fairly grim: the UK won't regain its 2007 level of output until 2018. The biggest threat to the UK economy right now according to the bank is...

May 16, 2012

USD remains firm ahead of today's FOMC minutes and amid ongoing EU concerns. UK PM Cameron put the situation in the euro area rather succinctly saying that "it either has to make up or face a potential breakup". The dollar index is continuing its ascent towards mid-January highs after...

May 16, 2012

In the BoE's quarterly inflation report, the bank referred that the outlook is still clouded by high uncertainty due to the weak demand and tight credit conditions and escalating risks from the euro area debt crisis which remains to be the greatest threat to the U.K....

May 16, 2012

Euro zone crisis remain the leading influence in the session and kept the USD well supported against the majors and commodity-related currency pairs. The session began with a heightened amount of risk aversion prevalent b ut by mid-morning sentiment calmed down. Perhaps that the ECB was holding a previously...

May 16, 2012

Yesterday's European session was a breather for the Euro area as German GDP came in much better than expected at 0.5% q-o-q. The strength of Germany's numbers pulled EU's GDP higher to 0.0% against a forecast -0.2%, avoiding a technical recession after last quarter's -0.3% GDP. Nevertheless, both German...

May 16, 2012

Mervyn King, the Bank of England's Governor, represented the quarterly inflation report on behalf of the Monetary Policy Committee, explaining the Bank's new projections for inflation and growth, where the Bank of England sees inflation slowing below 2% in two year, while continued risk of disorderly euro-area outcome forces...