The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
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 Bank of England will hold a meeting on Thursday at 14:00 MT time (GMT+3).
The US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).