In a speech at the Jackson Hole symposium at the weekend, Bank of England Governor Mark Carney raised the question of a global digital reserve currency, asking whether it may not be the most suitable long term solution to reform of the international monetary and financial system (IMFS). In a wide ranging speech on the […]
A research note today from Societe Generale found that, despite claims from senior US officials, the USD has generally weakened against other major currencies over the last two decades. This announcement comes after a press conference on Saturday, where US Treasury Secretary Steve Mnuchin argued that by not intervening to support the yuan, the Chinese […]
Lizzy Birmingham provides a brief roundup of the major FX moves this week, and the drivers behind each. 1) Pound Temporarily Bounces Back after May’s Resignation Today, British Prime Minister (PM) Theresa May announced her resignation, set for Friday, June 7. May’s announcement comes after three failed attempts to pass a Brexit deal, confirming mass-speculation […]
The minutes from the European Central Bank’s latest monetary policy meeting reveal anxieties about nations manipulating their currencies for competitive gain.
According to the ECB minutes, which were released today, “A number of remarks were made about recent exchange rate developments.”
It was noted in the minutes that while the euro exchange rate is not a target of ECB policy, movements in the exchange rate are deemed important insofar as they can affect the outlook for growth and inflation in the euro area.