Bank of England May Hike Rates Faster than Expected Bank of England May Hike Rates Faster than Expected | DZHI - DZH International 
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Bank of England May Hike Rates Faster than Expected

  • DAR Wong
  • 12 February 2018

Fundamental Outlook   The U.S. economy continues to signal inflation growth while Dow markets fall. China shows a fall in trade surplus while other economic indicators stagnate. Bank of England hints rate hike may come faster than expected.

The U.S. services index rose 59.9 in January and highest in past months. Jobless claims reduced to 220,000 in the week ended 3 February. Dow Jones performs the worst week in last 2 years after the market moved into correction from 26,616, top.

China’s Caixin services index grew 54.7 in January, matched the best record for more than 5-1/2 year. Another report on trade surplus grew USD20.3 billion in January and below forecast, after USD54.7 billion gains in previous month.

China’s consumer prices rose 1.5 percent in January on year basis while producer prices grew 4.3 percent from a year ago, both matched the forecast.  

Markit in London reports the services index rose 53.0 in January and slid from 54.2 in previous month. British Halifax home price index slid 0.6 percent in January after previous month was revised at 0.3 percent gains.

Bank of England comments rate hike may come faster than expected and larger than market’s consensus. Manufacturing production rose 0.3 percent in December and after the previous month was revised to 0.2 percent gains.

British Prime Minister Theresa May visited China in early February and secured deals worth more than GBP9.3 billion (USD13.26 billion), after Chinese President Xi Jinping pledged to upgrade their "golden era" in relations.

 

Technical Forecast   USD/JPY traded in a mild bearish trend last week. This week, the market is resisted at 109.60 area and prone to decline further as Dollar turns week. Support is identified at 107.50 region in case of drawdown towards weekend.

EUR/USD traded in small range before weekend as Dollar slowed down in rise. This week, we reckon the trend may reverse up if the 1.2150 support stays unbroken. Mixed sentiment is expected as the range is contained from 1.2150 to 1.2400 region.

GBP/USD slid last week after Thursday. The trend has failed to recover despite Bank of England reiterates rate hike may come faster this year. This week, we foresee the trend will be sideways with support rising at 1.3750 area. Resistance is expected to emerge at 1.33950 level while the market trades in mixed sentiment.

 

Disclaimer: This article is written for general information only. No liability by the writer, publisher or any third party involved in the distribution of this work.

DAR Wong is a registered fund manager in Singapore with 27 years of global trading experiences. You may reach him at dar@pwforex.com


About the Author
DAR Wong (Singapore)
An international speaker with 27 years of trading experience in the global financial markets, DAR is a Market Master and author of “Living Daylight in Stock Market: Monetizing Your Profits in 8 Days”.

DAR Wong is an active market trader, registered fund manager, educator and author.He began his career in 1989 as an institutional Futures trader with Bank of America. DAR Wong specializes in trading global derivatives and financial markets. He has 26 years of experience accumulated through tenure with Bankers Trust, Barclays Bank, Citigroup (Smith Barney Shearson Inc) and as an independent trader.

DAR is the author of “8 Ways to Invest in China’s Emerging Market” and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional traders and active investors.

He is a popular and sought after international speaker who has presented to financial professionals and investors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East (UAE).

DAR is registered with NASD (now known as FINRA) series 3 and 5 as approved by National Futures Association (NFA) of USA and holds a current portfolio as Fund Strategist and Advisor with Dektos Investment registered with Monetary Authority of Singapore.

DAR is profiled as “One of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading “. In January 2015, DAR was honored with Outstanding Award for International Financial Market Analysis granted by ASEAN Commerce (Thailand).

DAR is the author of "8 Waysto Invest in China's Emerging Market" and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional tradersand active investors.1

He is a popular and sought after international speaker who has presented to financialprofessionals and inverstors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China,Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East(UAE).2


Year
2003 - Set up ASPRI to provide hedging advisory for corporate clients and training for financial professionals
2009 - Released first book “8 Ways to Invest in China’s Emerging Market”
2010 - Profiled as “one of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading” along with Larry Williams, Andrea Unger, Michael Cook, and Daryl Guppy etc
2011 - Received “Spirit of Enterprise”awarded by Singapore Management University in Singapore
2012 - Honored with Individual Diamond Career (Thailand) awardedby Royal Privy Council of Kingdom of Thailand
2013 - Appointed Vice Chairman of ASEAN-China Commerce Association and led a delegationtothe annual China-Asean Expo in Guangxi Province, China
2014 - Fund Manager cum Director in Dektos Investment Corporation registered with Monetary Authority of Singapore
2015 - Released new book “Living Daylight in Stock Market - Monetizing Your Profits in 8 Days” in January
2015 - Honored with Outstanding Award in International Financial Market Analysis awarded by ASEAN Commerce (Thailand)
2016 - Honored with Medal of Integrity by Royal Councilin Palace of Palembng, Indonesia

References

1.TV programs on ChannelNewsAsia (Singapore);Radio on 95.8 Capital (Singapore); Newspapers such as The Borneo Post (Malaysia), 资汇报 (Malaysia); Regional financial magazines such as The Analyst (India), 东盟商界(ASEAN, China), 资本杂志 (Malaysia).

2.Spoke at events for CME Group, Euronext LIFFE, Tokyo Commodity Exchange, Singapore Exchange, Korea Exchange, Bursa Malaysia, Thailand Futures Exchange, Jakarta Futures Exchange, Indonesia Commodity and Derivatives Exchange, Tokyo Commodity Exchange, Interactive Brokers, Xinhu Futures, Hangzhou Money Fair, China (Shenzhen) International Finance Expo, China (Guangzhou) International Finance Expo, Euromoney, CIMB, Maybank, RHB, UOB Bank, Asia Trader & Investor Convention, Global Rubber Conference, International Rubber Conference, Malaysia Rubber Board, International Rubber Research and Development Board,Malaysia Ministry of Agriculture, Rubber Industry Smallholders Development Authority, Vietnam Rubber Association, Cambodian Rubber Association, Bureau of Agriculture Research Philippines, Myanmar Rubber Planters & Producers Association etc.