20/04/2017 - Pound's Gains Limited After IMF Warning

GBP

The Pound's gains after Tuesday's announcement were halted after the International Monetary Fund warned that Brexit’s unpredictable outcome poses a risk to global financial stability at a time when it is already challenged by heavily-indebted US corporations, China’s credit bubble and weak European banks.

The IMF warned that banks were likely to be the sector of the City hardest hit by Britain’s departure from the European Union and that the costs of doing business would rise and regulation would become more complex.

Whilst they acknowledged that there was “significant uncertainty” about the outcome of the two years of Article 50 negotiations, it added that “the challenges stemming from Brexit could undermine financial stability in ways that are difficult to estimate or predict at this juncture.”

USD

During yesterday’s session US Treasury Secretary Steven Mnuchin said that President Donald Trump is "absolutely not" trying to talk down the strength of the dollar. 

Trump said last week in an interview with the Wall Street Journal that the dollar was "getting too strong", and backed away from labelling China a currency manipulator which he had promised during his campaign. Despite this, Mnuchin directly rejected the idea that Trump was trying to talk down the dollar, saying "Absolutely not, absolutely not."

Key Announcements 

13:30 – USD – Philly Fed Manufactuirng Index

13:30 – USD – Unemploymenbt Claims expected to increase to 241k

16:30 – GBP - BOE Gov Carney Speaks

17:30 – GBP - BOE Gov Carney Speaks

18:15 – USD – Treasury Sec Mnuchin Speaks