The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
Bank of England left policy unchanged
At its December 14 meeting, the Bank of England (BOE) left the benchmark interest rate at 0.5% after a rate hike in November. Such decision came totally in line with the market’s expectations.
The Monetary Policy Committee (MPC) repeated that “further modest increases” of the rate would probably be needed over the next few years if the economy performed as expected. The MPC, however, didn’t give any further details about the timing of these future rate hikes. Traders do not expect another increase until the end of 2018.
All MPC members voted to keep the monetary policy unchanged. The central bank acknowledged the progress in Brexit negotiations. According to the BOE, the latest developments reduce the chance of Britain’s disorderly parting with the EU.
On the economic front, the regulator pointed out to a weaker-than-expected economic growth this quarter and concerns about an unwelcome increase in domestic inflation pressures.
GBP/USD has been trading in a volatile fashion between 1.3410 and 1.3465.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
2022 was rough: inflation, energy crisis, and plenty of other controversial situations…