Frank Walbaum
FX Strategies.Asia
Important news for the day:
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Thu, 01st, 13:00 CET UK BoE interest rate decision.
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Thu, 01st, 13:00 CET UK Bailey speech.
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Thu, 01st, 14:30 CET US unemployment claims.
BoE rate decision
In the UK the Bank of England will decide today upon their interest rates moving forward. Signs point towards a rate cut of 25 basis points as market participants expect. It would be the first time since the Covid- 19 pandemic that rates will be adjusted. Previously inflation figures had rocketed sharply due to various reasons. The key rate might be adjusted to 5.0%, which is priced in with a 57% likelihood today. SHould rates remain the same the Pound might gear up momentum. Yesterday Jerome Powell gave further hints that also the Fed in the US might start reducing rates at their next meeting in September.
Market talk
Yesterday the Dollar lost momentum after the interest rate decision in the US. Currently though the Greenback is showing signs of fresh momentum. Especially the GBP has weakened in the earlier hours today. Worth noting that the oil market is showing signs of a positive trend reversal. The market had changed the trend direction yesterday. Also indices were positive again, as the last trading day of the month had ended slightly better than the previous trading days. Also tech stocks saw a rebound and the AUD might gear up steam as well as the daily chart shows.
Tendencies in the markets:
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Equities positive, USD stronger, BTC weaker, oil strong, Gold sideways, Silver positive, JPY stronger.
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