There was an IED attack on a London train this morning. This is the last thing I want to talk about this morning, so you can catch the live updates here.
Subsequently, there was also a knife attack in Paris. This is having a profound bullish effect on the British pound, which is higher by 1.43% v the dollar.
European stocks are flat, but the British FTSE is -1.25%, offset by the gains in her currency.
Apparently, the Bank of England is getting hawkish.
“The standout undervalued currency in G-10 is sterling,” Citigroup Inc. Strategists led by Jeremy Hale said in a report. “The possibility of a hike in the near term is now non-negligible and this, combined with the fact that the pound’s real effective exchange rate is close to its all-time low, could support the currency from here.”
On the other hand, as Unicredit’s Gkionakis said, “If they don’t do it (hike rates) this time, their credibility will be lost completely for the next few years.” Markets expect the BoE to move in November, he added.
A great big nothing burger, atop a flaming vegan grill.
Nasdaq futs are -16.
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Correlation is causation. /s
Never fear. The old women running things across the pond have it all under control.