Fx round-up_ carry currencies gain in otherwise calm market ahead of yellen _ digitallook. com

Foreign exchange markets were very calm ahead of a speech from Fed Chair Janet Yellen scheduled for just a little afterwards in the afternoon. As of 16:55GMT euro/dollar was edging higher by 0.03% to 1.1199. Cable was up by 0.18% to 1.4280 and dollar/yen drifting lower by 0.12% to 113.31. Ahead of Yellen´s remarks, sterling shrugged of a decision by the Bank of England´s Financial Policy Committee to hike UK lenders´ counter-cyclical capital buffers


to 0.5% from 0.0% by the end of March 2017. By some estimates, that would force British banks to hold an extra 5bn pounds in total as buffers, with the the impact on the country´s largest lenders expected to be offset by a reduction in other requirements. “The relatively timid measures announced by the Bank of England’s Financial Policy Committee (FPC) today underlined that it is set to tread cautiously when implementing macroprudential policy. Accordingly, we doubt that the FPC’s actions will knock the economic recovery off course,” analysts at Capital Economics said in a research note sent to clients. New Zealand´s dollar was the exception to the placid trading conditions in foreign exchange markets on Tuesday, rising by 1.18% to 0.6803. The greenback was also on the backfoot against the Aussie, as the Australian unit is known in FX markets, with the latter gaining 0.35% to 0.7570.

To take note of, as of Tuesday afternoon traders were placing a probability of an interest rate hike by the Fed at its June meeting at just 33.0%, down from the 46.0% estimated a week ago, according to Bloomberg data. Figures from the US government published on 28 March revealed that personal expendituers and income unexpectedly fell in February, with a measure of inflation, the so-called PCE deflator advancing just 0.1% month-on-month, leaving the year-on-year rate of change at 1.7% – versus the 1.7% forecast by Capital Economics for the final quarter of the year. More news 20:18 Mid-East shares move lower, Russian oil output holds near record levels Stocks across the Middle East traded lower on Sunday, following remarks from Saudi Arabia´s deputy crown prince that appeared to cast doubt on the likelihood that the world´s major oil producers would agree to freeze output when they met in Doha. 20:21 Santander planning cull of senior staff in Britain, report says Britain´s fifth largest lender was set to cut the number of senior staff in Britain in a bid to costs and bolster profit its profits margins, The Sunday Times reported. 16:41 Sunday newspaper round-up: Interest rates, Tata, Premier Foods, G4S, Centrica The Bank of England will hold interest rates at their current historic low for three more years, according to the market’s current predictions. Judging by the overnight deposit rates that banks are charged to hold their cash at the central bank, which indicates market predictions on borrowing costs, the Sunday Times reported, there is a small chance of a rate cut during the next couple of years and that there will not be a rise until the middle of 2019.

14:33 Sunday share tips: Card Factory, Direct Line, Epwin Group Shares in Card Factory are worth buying, said the Sunday Times’ Inside the City column. Although its longstanding boss is about to retire and be replaced by discounter B&M’s Karen Hubbard, she joins a company whose business model generates fistfuls of cash from an amazingly cheap offering. As Card Factory, unlike its rivals, makes almost all its own cards even the ones it sells for under 50p make a profit. 01 Apr US close: Stocks end higher after better-than-expected non-farm payrolls US stocks gained after the non-farm payrolls report and data on US manufacturing activity came in better than expected. 01 Apr Friday newspaper share tips: Panmure Gordon, Grainger Panmure Gordon has a tough road ahead of it, the Financial Times´s Lex column believes. 01 Apr Sector Movers: Resource stocks hammered as oil futures slide Resource stocks headed lower on Friday, following a slide in oil and metal futures prices, as both headline London indices ended the week in negative territory. 01 Apr Week ahead: US Fed minutes, service sector PMIs in focus With the latest monthly US jobs data now out of the way the focus will shift back towards central banks in the run-up to the Federal Reserve´s policy meeting on 27 April and the start of the US earnings season on 11 April.

01 Apr Commodities: Oil futures slide on Saudi comments Oil futures headed lower on Friday, after Saudi Arabia said it would freeze production only if other major producers did the same. 01 Apr Europe close: Shares trim losses after US jobs report A late rally on the heels of a spate of strong reports on the US economy helped European equities trim early losses on Friday, but failed to fully offset the impact from retreating commodities prices and gloomy Japanese data.

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