Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…
The BOE meeting: uncertainty rises, the pound… stands still?
On November 7, the Bank of England will announce the interest rate decision. Normally such meetings have a significant impact on the currency, but the analysts advise this time may be not the case.
The British economy has been doing relatively well recently despite the Brexit tensed environment: the unemployment below 4% is close to the mark unseen since the last 50 years, average earnings are growing by 3.8% and real incomes are rising by 2% annually, while the inflation stays at 2%. So, from the outside things don’t look bad.
However, not all the Monetary Policy Committee members think the same: at least two out of nine are believed to be reluctant to keep the rate at the current level. Prolonged Brexit deadlock, business confidence at the 10-year low, internal political debates and the global economic slowdown all are pushing towards the monetary easing that we may see later on. In turn, that should force the GBP to drop.
But for now, these factors are not expected to divert the British pound from the rising trend it has been showing against the main currencies since August this year.
Follow news with FBS to know whether the BOE statement will affect the GBP.
The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The market has started the week with a mixed sentiment…
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.