That’s been incredible week for the pound which has gotten an ultimate boost from the Band of England. Today BoE’s Vlieghe, shared the view of members who say an increase in borrowing costs could be needed soon. The GBP has instantly jumped as Vlieghe has been viewed so far as one of the most dovish member within the whole MPC. On the flip side, the FTSE100 (UK100 on xStation5) is tumbling more than 1.2% following the terrorist attack which took place in London and injured 22 people, according to AFP agency. To be precise, a suspected terrorist set off an improvised explosive device on a London subway train at rush-hour. It was the fifth attack this year.
One could say that in defiance of the newest sanctions imposed on North Korea, the country chose to carry out another launch of ballistic missile targeted at Japan. It was a second one (towards Japan) in less than a month and the first one since the regime of Kim Jong Un was afflicted by another string of sanctions announced earlier this week. North Korea hit back and said that it would take even stronger self-defense actions if the US continues its current course.
Investors across the old continent seem to be literally intact despite the overnight’s North Korean missile ballistic launch. There is nothing new that the regime of Kim Jong Un tries to show off throughout parading its nuclear weapons. Having said that, there were almost no market reactions, neither on gold, safe haven currencies nor bonds. In effect, the European equity markets have started marginally higher and the DE30 appears to still have a chance to try to break its resistance line.
This week is likely to be the worst for Bitcoin since January 2015. The sell-off gathered momentum on Monday and deepened afterwards. China has been decisively the largest accomplice of that rout. What’s more, the country aims to stop exchange trading of cryptocurrencies by the end of September, according to people familiar with the matter.
The US dollar got the reassuring inflation data yesterday as both CPI and core CPI quite easily beat forecasts. Even as a pick-up in terms of CPI could have been mainly fueled by higher gasoline prices (a consequence of the hurricane Harvey), it might be a critical point for the greenback which has responded fairly weak to a surge seen on the US Treasuries over the course of recent days. That said, retail sales might be a game-changer.