Welcome to Tuesday!
Super Thursday: results
The Bank of England announced its inflation report and interest rates vote. All nine members of the Monetary Policy Committee voted for holding the interest rates unchanged at 0.5%. Regarding inflation, the CPI fell by 0.1 percentage points from November to December 2017.
As it was anticipated, the BOE gave the positive prospects for the interest rate hike. The Bank said they are returning to targeting inflation at the two-year horizon, that is why they may raise the interest rate earlier than planned before. It caused the significant pound rally.
However, traders should be careful. Experts still see danger for the UK economy in the Brexit deal, that highly affects the economic growth of England and the inflation with interest rates as a result.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…