Sterling short-term interest rate swap markets pushed back chances of a first rate rise by the Bank of England to late 2016, after a weaker-than-expected U.S jobs report saw investors cut the odds of a Federal Reserve hike by the end of 2015.
An improving British labour market has raised expectations the BoE will be among the first major central banks to raise interest rates, although it is seen unlikely to act before the Fed.
Sterling overnight interbank average rates – the very short-term interest rates that form the basis of lending costs in the wider economy – price in a chance of a first rate a year from now, having earlier factored in a move in mid-2016.
The U.S. jobs reports showed payrolls outside of farming rose by 142,000 last month, well below a consensus forecast of 203,000 in a Reuters poll. August figures were revised sharply lower to show only 136,000 jobs were added in August.
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Dean Popplewell
He has a deep understanding of market fundamentals and the impact of global events on capital markets.
He is respected among professional traders for his skilled analysis and career history as global head
of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean
has played an instrumental role in driving awareness of the forex market as an emerging asset class
for retail investors, as well as providing expert counsel to a number of internal teams on how to best
serve clients and industry stakeholders.
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