Xu Chenghong: Carney Raises Interest Rate To Cause Pound Pound Soaring

< p > the main factor in the market trend yesterday was the intensifying tension in Iraq. The market was worried about the impact of the situation on the supply of crude oil. Yesterday, oil prices jumped to a 9 month high position. After Obama said that there was no military attack, stocks quickly collapsed, the Dow fell more than 100 points, and gold prices rose under the support of hedge buying. < a href= "http://www.91se91.com/news/index_c.asp" > foreign exchange market < /a > was also affected, because the fear of rising oil prices affected US consumer spending, and the US dollar fell.

< /p >

< p > < strong > crude oil prices rose to nine month highs < /strong > < /p >

(P) the armed forces of Iraq and the Islamic state of Syria in the past three days have launched a lightning attack on the central and northern parts of Iraq, triggering the most serious crisis since the US troops' withdrawal from Iraq in 2011. The Iraqi government troops had no chance to resist the attack on the rebel offensive and fled to the north. Mosul and Tick Ritter in the northern city collapsed, and the largest refinery in the northern part of the city was also surrounded. At the same time, the capital Baghdad was also in danger.

< /p >

"P" near Baiji, near Kirkuk, rebels surrounded Iraq's largest oil refining center, further threatening the country's oil industry.

Residents in the border area with Syria saw that they pushed away the sand ridge on the border and practiced a revival dream of the Muslim empire across the two countries.

< /p >

To occupy Kirkuk and obtain huge oil resources is a long cherished dream of the Kurds. They think Kirkuk is their old capital. Before that, the relationship between the Kurdish freedom fighters deployed on the ground and the Iraqi government forces had been on the verge of attack.

< /p >

Under such a dangerous situation, the Iraqi ambassador to France publicly appealed for help Thursday, calling for "a href=" http://www.91se91.com/news/index_c.asp "United Nations /a". The Security Council provided additional military assistance to Baghdad at the later meeting of that day, including the support of the air force and UAV.

< /p >

US President Obama responded to this later. He said he himself was worried about the situation in Iraq. The urgent task at the moment is to ensure that the rebel forces in the country can not fully stand firm. For this reason, the United States will consider adopting various possible measures to deal with this situation. P

Once the situation in Iraq threatens the national security interests of the United States, the US side will take military action.

< /p >

< p > Obama pointed out that once the military action is needed in Iraq in the short term, the US government will examine and assess all possible options. At present, the White House and The Pentagon are racing against time to determine the best countermeasures against the situation in Iraq.

The White House spokesman added later that the United States may send unmanned aerial vehicles to Iraq to support the government troops and do not rule out the possibility of air strikes on the rebel controlled areas of the country, but the United States will not consider sending the ground troops to the country again.

< /p >

(P) the blitzkrieg launched by the Al Qaeda armed forces on Iraq almost surprised global investors, because the country has been out of sight for quite a long time since the withdrawal of the US Army in 2011.

As a major oil producer in the world, the direct consequence of the deterioration of the situation in Iraq is the rapid jump in crude oil prices, and New York crude oil closed a nine month high on Thursday.

< /p >

< p > the market believes that if the tense situation in the Middle East continues to raise oil prices, the consumption expenditure of the major countries including the United States may be suppressed by rising oil prices, which is obviously unfavorable to the prospects of economic recovery. In this context, investors' confidence in the economy will also be suppressed, which will bring the risk assets to the top. Meanwhile, assets with high risks and high returns will be suppressed.

< /p >

< p > it is worth noting that the previous US fiscal reduction action mainly relies on the massive reduction of defense expenditure. Once the situation changes, the US Army needs to return to the Middle East. Therefore, the additional military spending will make the financial situation of the country once again become unbearable. This will also make the Federal Reserve enter the policy tightening cycle on schedule again.

< /p >

< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > > Carney raise interest rate < /a > speech boosted the pound rise > /strong > /p >

Today, at the beginning of the Asian market, the pound hour chart shows a blowout. The Hawking speech of Carney, the governor of the Bank of England, stimulated the exchange rate to rise. Carney hinted that the Bank of England could raise interest rates sooner than expected in the market. He said that interest rates in the UK could be earlier than the expectations of the financial market, and unexpectedly warned that monetary policy could start tightening within a few months. P

< /p >

< p > Carney pointed out that the exact time for the first interest rate increase has been full of speculation, and the decision to increase interest rates has become more balanced, which may be earlier than the current market expectations.

< /p >

< p > Carney also provides frameworks for those options that can be used to cool the real estate market overheating. These actions can replace the effect of gradual increase in interest rates.

He also pointed out that the central bank will carefully assess the merits and demerits of the property market risks next week, including the criteria for loosening mortgages that are not popular with people.

< /p >

Carney, P, is most impressed by the talk about raising interest rates. Only a few analysts expected that the central bank would raise interest rates before the second quarter of next year.

Carney pointed out that the British economy still has room to grow without pushing up inflation, but so far there are few indications that the pace of economic expansion has slowed down. The central bank had originally thought that this would happen in the second half of this year.

< /p >

< p > the market thinks that Carney's speech triggered a considerable demand for pound sterling in the light market condition. The market seemed to be an exaggerated rise in the scarcity of liquidity.

There is no doubt that the market has changed expectations of the Bank of England's interest rate hike in the future, after the market believed that the central bank will raise interest rates for the first time in the spring of 2015.

< /p >

Last month, a small number of policymakers in the Bank of England said the decision to raise interest rates has become more balanced. Raising interest rates is probably too early to prevent a sharp increase in interest rates, P said.

But Carney said yesterday that the timing of the first increase in interest rates is even more important. The way to raise interest rates in the future will be gradual and limited, partly due to high household debt and strong economic growth.

< /p >