First step to rate hikes in BOE’s Super Thursday
6 August, 2015
Today is likely to mark the first steps towards the commencement of the interest rate tightening cycle for the Bank of England. The markets can rest assured there won’t be any rate hike at this meeting and in the past we would not know how the MPC had voted for another two weeks, but going forward those minutes and voting patterns will be released along with the decision. Whilst the premise of this change to the BOE’s procedures may have good intentions, it could lead to greater short term volatility both over the release and after it, before investors have enough time to absorb all the information and get a better understanding of what the BOE’s thinking is. Throw into the mix the Inflation Report and sterling could see considerable volatility. This morning sterling is a little higher against the dollar with GBPUSD at 1.5635.
But today’s meeting could be academic as the BOE is highly unlikely to move before the US’s Federal Reserve. Whilst it will be important to see the latest two year inflation projections and decipher whether Mr Carney is edging towards a move hawkish stance, really the bigger question remains if the FOMC will move in September, November or December, with the market pricing in a higher chance of a September rate hike following hawkish comments from Fed voting member Lockhart earlier in the week.
Source link
Related materials
Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...
UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...
Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week...
U.S. job growth surged more than expected in June and employers increased hours for workers, with signs of a labor market strengthening that is likely...
USD recovered marginally on Friday, but had its biggest quarterly decline against several currencies in nearly 7 years following hawkish signals...
Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters...
Global equities moved higher on Monday as optimism continued to improve on global economic growth. However, USD...
The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption...
The crucial US labour market data for May will be released today, June 2nd at 13:30 BST. It includes non-farm payrolls...
Top Brokers offering Daily Forex Market Reviews
Forex Currencies Forecasts
| # | Broker | Review | |
|---|---|---|---|
| 1 |  | Easy Markets | 88% |
| 2 |  | FXTM | 86% |
| 3 |  | FxPro | 83% |
| 4 |  | FIBO Group | 81% |
| 5 |  | HYCM | 74% |
| 6 |  | FXCM | 72% |
| 7 |  | HotForex | 70% |
| 8 |  | Fort Financial Services | 69% |
| 9 |  | FBS | 67% |
| 10 |  | Exness | 66% |
