Last week, Mark Carney surprised the markets with his dovish speech after the BoE inflation report publication. By contrast, this week we have Bank of England minutes, which may provide more information about this surprising volt. Since BoE has introduced its forward guidance, they were changed significantly three times. Firstly, central bank focused on the unemployment rate, then expanded the range to indicators describing labor market “slack” and finally took a closer look at the wage growth – which in turn is very poor.
Where will this week main market focus go?
- Inflation data from the UK on Tuesday,
- CPI and housing market data from United States also on Tuesdays,
- BoE and FOMC minutes on Wednesday,
- Jackson Hide symposium (Thursday-Saturday) where Janet Yellen has got her speech.
Barclays says that the key factor for investor will be the labor market evaluation in the FOMC protocols, as well as in Janet Yellen statement – dollar may stay under pressure in this week. Traders expect a dovish Fed Yellen speech.
