The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
Will the GBP advance on a strong BOE policy?
Information is not investment advice
The Bank of England gives the interest rate press conference on Thursday at 14:00 MT time.
Instruments to trade: EUR/GBP, GBP/USD, GBP/CAD, GBP/CHF
The last activity from the side of the Bank of England was a unanimous vote to keep the rate unchanged at 0.1% after it was reduced twice in March to respond to the virus damage. The policymakers expressed their commitment to support the economy and maintain a possibly favorable financial climate in the UK. The latter has been fortified by an extensive policy of quantitative easing the Bank has been implementing. Nevertheless, similar to other countries, an increase in unemployment is expected in line with economic damage in the nearest future. Coupled with Brexit, this period promises to be one of the toughest challenges for the British economy and the Bank of England. We will be looking into the details and subtle messages about the economic outlook in the report of the Bank of England’s policymakers while the rate is expected to stay steady.
- If the bank’s message is optimistic, the GBP will rise.
- If the bank’s message is not very optimistic, the GBP will fall.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
The US NFP will be published on August 7 at 15:30 MT time.
The RBA will make a rate statement on August 4 at 7:30 MT time.