[England] Interest rate rise will not be derailed according to Bank of England governor 29-Aug-2015

Since Chinese stock market crashed this month, the global market have become bearish as risky asset sold sharply. This event brought the discussion if rate rise in US and UK is expected to be delayed. The market reacted as USD had been weaken against other currencies such as EUR or JPY until 24-Aug. GBP had been weaken in the same period as USD but it has not been recovered yet.

Today, Bank of England governor, Mark Carney said China’s financial woes will not derail plans to raise interest rates.

The Telegraph >> China's 'Black Monday' will not derail rate rises, says Mark Carney

Speaking at the Economic Policy Symposium hosted by the Federal Reserve Bank of Kansas City, in Jackson Hole, Wyoming, today, Mark Carney acknowledged that the dramatic decline in Chinese stocks had sparked volatility in Western markets but claimed that it would not knock his economic plans off course.
“The direct exposure of the UK economy to China is relatively modest,” he told delegates. “Developments in China are unlikely to change the process of rate increases.”

This discussion was held after the Forex market closed on Friday, and it implies GBP will be stronger against other currencies at the market opening on Monday, though it is Bank holiday in England, by the way.

Trend & momentum for GBPJPY indicates it is expected upside in early next week. JPY has been stronger while the stock market was going down.

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