EUR 8.82 For Business Accounts Only

The Morning Track impatient

- The Morning Track – Impatient? by Bob Savage
/articles/the-morning-track-impatient/

Apologies to the loyal readers of this missive, yesterday was about the FOMC and my inability to do everything in time. Today is the same. I’m chairing a conference in London and found between sketchy internet and jet-lag that writing a timely piece was impossible. I’ll make it up with a review of the conference later. Time remains a key component for all traders – and waiting it out for change will be important. The Philippines, Indonesia and Taiwain central banks were all on hold today. So too was the Swiss National Bank. “It may be some time before the outlook for jobs and inflation calls clearly for a change in US rate policy,” Mr. Powell said. The compare and contrast today is between the FOMC Powell patience with the dot-plots signaling no more rate hikes this year - 11 of 17 officials up from 2 in December - against the impatience of the Norges Bank which hiked rates 25bps to 1% today. "Our current assessment of the outlook and balance of risks sugg
ests that the policy rate will most likely be increased further in the course of the next half-year," noted Norges Governor Olsen. The impatient view of the day is also in the market mood for Brexit solutions which have nosed dived from a delay of length to a short respite from oblivion as no-deal Brexit scenarios return to risk books. The makes it clear that central bankers matter less than politics as equities respond to fears of a global slowdown from US/China trade doubts and Brexit hangovers. NOK/GBP is the one to watch as GBP is drops 0.45% against the USD and the NOK rallies 1% against the USD. This is a world that has grown impatient with waiting – and how the BOE handles this today is the next story.