UK rate hike ahead?By Arnaud Masset
The British economy is looking fine: growth of annualised 1.5% in Q4 2017, a stable unemployment rate of 4.3% and annual inflation running at 2.5% in December. So the Bank of England might have no choice but to up its forecasts and to consider a rate hike as soon as May. Investors: watch this space!
GBP/USD is trading at around 1.3850, down 0.20% on the day. The first resistance area lies at around 1.4290 (high from last Friday), while a stronger one can be found at 1.4345 (high from 25 January). On the downside, a support stands at around 1.3655 (previous high from 20 September and lows from mid-January).
India roarsBy Vincent-Frédéric Mivelaz
The subcontinent’s economy is looking good, pushing stocks and the rupee higher. The S&P BSE Sensex rose by 1.58%, and USD/INR is trading at 64.25 (-5.82% since January 2017).
Yesterday the Reserve Bank of India confirmed it will maintain its Repo rate at 6%, unchanged since 8 February 2017. This should limit debt increases (Indian debt is 50.1% of GDP) and contain inflation at 2-6%. 2017 saw GDP growth of 7.10%, while inflation indices ticked along solidly. On the downside, exports faltered, while energy-price hikes and a re-issuance of paper currency hit consumption. The government countered with a corporate tax cut that should boost buying and stimulate new jobs (unemployment is stagnant at 8.8%).