The Bank of England will release its monetary policy summary and announce the interest rate on September 19, at 14:00 MT time.
Evergreen buck soars on dismal EU outlook
On Wednesday, the evergreen buck tacked on versus the common currency due to the fact the euro was suppressed by fears about the euro zone economy. Meanwhile, the UK currency surged ahead of a no-confidence vote in Theresa May's cabinet.
The common currency slumped by 0.13% versus the evergreen buck hitting $1.140, after being suppressed earlier to a 12-day minimum of $1.138. Previously this week, it was reported that Germany managed to escape a recession in the second half of the previous year and ECB Governor Mario Draghi told on Tuesday that the euro zone economy appeared to be weaker than expected.
Outgoing ECB governor Mario Draghi acknowledged the dimmer outlook and his cautious tone added tracking to the common currency’s rebound from three-month maximums. Market experts aren’t assured that the EU’s major bank will be capable of normalizing its monetary policy later in 2019.
In the United Kingdom, May is generally anticipated to retain power in the confidence motion, called by Jeremy Corbyn, the opposition Labour Party leader after a devastating defeat of the prime minister's Brexit divorce pact in the country’s legislative body on Tuesday.
Apparently, defeat of the pact left Great Britain’s departure from the European bloc in disarray 10 weeks before it’s due to take place.
Although the UK currency had tumbled by over 1% versus the evergreen buck early on Tuesday, it tacked on after the parliamentary vote on the pack because traders were assured that the defeat would make the United Kingdom pursue different options as for the European bloc.
As a result, the common currency dived by 0.3% versus the UK pound, reaching a seven-week minimum of 88.44 pence.
The evergreen buck dived by 0.17% against Japan’s currency hitting 108.83 having rallied by 0.5% versus its Japanese counterpart overnight.
We've got some positive news for the British pound and we are awaiting the release of the core retail sales for Canada at 15:30 MT.
The tweet by Iran's foreign minister increased the possibility of tensions in the region. It pushed the oil prices up.
The European trading session will be highlighted by the events for the British pound. Traders will pay special attention to the BOE meeting at 14:00 MT.