The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The Bank of England may support the GBP
The Bank of England will release its monetary policy summary and announce the interest rate on June 20, at 14:00 MT time.
We anticipate the BOE to keep its interest rate at 0.75%. At the same time, the hints on the possible changes to the rate by the bank will likely bring volatility to the GBP. Last week, policymakers expressed mixed views on the next steps by the BOE. Some of them are sure that the rate hike is needed soon to keep inflation pressures under control. Others mention political risk as a reason why the Bank of England is going to keep the rate on hold in the near future. Let’s wait for the final opinion on the issue by the BOE governor Mark Carney.
• If the BOE sounds positive, the GBP will go up;
• If the BOE sounds negative, the GBP will go down.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.
The market sentiment is mixed, but there are still interesting movements on the market.
Three main drivers of the market: the stimulus package, the US presidential election and the coronavirus. Let's look how market reacts.
The US Department of Justice thinks 87% a market share is too much for Google alone. The market thinks it's ok.
EU Flash Manufacturing & Services PMI will come out on Friday at 11:00 MT time!