subject: Bank Of England Running Out Of Time And Credibility 4th July, Uk Forex Update [print this page] Vantage FX (http://www.vantagefx.co.uk/) provides a daily overview of the news activity and announcements currently shaping currency movements across the world. Jay Mawji, the companys head of market analysis, takes a look at news surrounding Eurozone economies on 4th July 2012.
Shock this morning as the Bank of England, viewed as the stalwart of the UK economy became embroiled in the LIBOR scandal. There has always been a criticism on the Bank of England for their lack of action during the recession although they have correctly gauged the effect of the Eurozone on the UK economy.
Tomorrow is a big day. We have been talking about the need for growth in the UK since the 4th Quarter 2011. The UK economy slipped into a recession earlier this year and posted further negative GDP figures a few weeks ago. As inflation fell, the door has been flung wide open to further QE. QE3 was discussed at the last MPC meeting, where a vote of 4 in favour against 5 on hold, with expectation growing to see the introduction of further easing. Sterling has weakened across the forex markets this afternoon as traders take position ahead of tomorrows decision. Britain Expects!
Trending on twitter today has been ECBs Knot (If you are on twitter follow us!). No doubt the ECB is in a bind and they have very little power to make decisions to get out of it. One of the pressures it faces regards the cost of borrowing in the Eurozone. With borrowing becoming so expensive, Governments are unable to afford their debt and consumers have found their pockets emptied. There has been pressure on the ECB to lower interest rates under instruction from the IMF and other supporting bodies. With poor data in the Eurozone and very little positive sentiment, the ECB may bow to the pressure of the bodies propping it up.
Tomorrow is a day that belongs to the Central Banks have they ever let us down?
About Vantage FX UK
Vantage FX UK is a FX trading broker based in the City of London, providing foreign exchange trading services to clients in the UK, the EU and the rest of the world.
What sets Vantage FX apart is its wide range of services and outstanding level of customer support. The company strives to provide an intuitive, interactive Forex experience by continually innovating and taking advantage of the latest trading technology, such as MetaTrader 4 and Expert Advisors.
Vantage FX also offers extensive educational resources to help give traders their edge, keep up with daily market commentary and try a FX trading demo account. For further information, visit http://www.vantagefx.co.uk/
