Good day for all traders out there! We prepared a gold analysis and a bunch of other news for you to enjoy! Here's what you should know:
Bank of England lifts interest rates above crisis minimums
On Thursday, the Bank of England had its interest rates lifted above their financial crisis minimums. However, Britain’s major bank stressed it wasn’t going to keep increasing them in the nearer future because Brexit approaches with its uncertain terms.
The major bank’s nine rate-setters suddenly turned out to be unanimous in their vote to have rates lifted from 0.50% to 0.75%.
Financial analysts polled by Reuters had hoped for a 7-2 vote in favor of lifting rates.
Britain’s key bank told that the British economy, while soaring more slowly than it did previously ahead of the UK’s departure from the EU in 2019, was operating at nearly its speed limit, thus increasing the likelihood of greater home-grown inflation pressure ahead.
However, the message for interest rates still appeared to be one of gradual as well as limited leaps as Britain’s primary financial institution saw inflation just a fraction higher than its 2% objective for the next few years.
The estimate was built around on bets by traders who actually expect another rate lift next year or even in 2020. They guess the BoE will increase its rates to 1.1% in 2020. Evidently, it was a bit lower than an estimate of 1.2% the last time Britain’s major bank came up with estimates for the UK economy in May.
As for the reaction of the financial markets, it was quite muted. As a matter of fact, the British currency tacked on versus its US counterpart, while the UK government bond revenue added, but then slumped.
The world's number five economy has speeded down since the referendum outcome of 2016 to break up with the European Union.
At the same time the Bank of England kept drawing attention to the fact that the UK economy could be endangered by excessive inflation even with sluggish surge.
China delays GDP data because of potentially harmful numbers, but we will never delay our news because every release is an opportunity to trade on it! Here’s what will move markets today:
Bloomberg says yesterday’s movement was so far the wildest. It was the first time in history for the US500 to crash by 2% and close the day 2.8% above the neutral line. There’re several possible reasons for the move.
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
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.