GBPUSD “..the bottom of the double top..” Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.

 

Central bankers look across the pond Rumours of rate cuts probably premature

Today the US Federal Reserve’s rate-setters meet and, following initially surprising then more extensive trimming of the Fed Funds target last year, will probably keep things as they are at 1.75 per cent. Mind you, the bond market is as always marching to its own tune, currently anticipating an extension into longer maturity repos in what the Fed insists is not QE at the discount window. However, the Congressional Budget Office estimates that within the next decade US national debt will rise to 98 per cent of GDP, its highest since WWII. Tomorrow the Bank of England’s MPC meets and rates are also likely to remain on hold at 0.75 per cent.

British Airways has cancelled all flights to China and US authorities are considering doing the same. The death toll from the coronavirus has risen again, currently 132, and the number of confirmed cases stands at about 6000 – which the BBC says is higher than the peak during 2003’s SARS virus outbreak which reached 5327 in mainland China and 349 killed.

Financial Markets and Political Commentary

 

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