BoE in focus after a 50 basis points cut from the Fed

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu, 19th, 13:00 CET UK BoE interest rate decision

Bank of England

Traders will focus on the interest rate decision of the Bank of England today. Despite no change being expected the rate statement might offer further volatility for financial markets. Last month, the central bank had already reduced rates. This was the first time in about four years and another rate cut might follow in November. Inventors might hence focus on the outlook of governor Andrew Bailey. In focus will also be the inflation and growth projections. This might give more insights for the tightening policy moving forward. In the meantime the Pound has been gearing up steam against the Dollar.

Market talk

Weakness of the Dollar continues to drive the positive general market sentiment. This causes most currencies to rise against the Greenback, whereas the JPY is lagging behind for now. Stock markets are nearing their recent all- time- highs again and Oil and Silver keep pushing higher. This might be due to the fact that investors believe that the outlook for the economy remains positive. Gold on the other hand is lagging behind slightly as the positive risk sentiment causes investors to prefer risky assets. Bitcoin looks also set to run higher. ETH is also rising, yet with less momentum. The interest rate decision in the UK might be the key volatile news event today.

Tendencies in the markets

Equities positive, USD weak, cryptos positive, oil higher, Silver higher, Gold sideways, JPY sideways

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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