Markets Focus on How the BoE Will Respond to the Possibility of a Hard Brexit

Market participants will largely focus on the BoE Interest Rate Decision due to be released at 11:00 GMT this morning and it is probably the biggest topic of the day. Will the BoE keep rates on hold as expected? The outlook may say so but some traders have already stacked up Shorts on the Pound as they think that a possibly hard Brexit on the horizon might cause the Bank to lower rates sooner rather than later

The Fed Delivers a Hawkish Cut

Elsewhere, the dollar remained supported after the U.S. Federal Reserve cut interest rates, as expected, but offered mixed signals about future easing, remaining hawkish for the most part. Specifically, Powell commented that there will be no easing cycle now and also stated on the repo issue "could happen but has no impact on financial stability". A further cut is expected from the bank but was denied hence the USD gained some momentum towards the end of the session.

Forex Preview: NOK Set to Break Higher?

The Norges Bank will possibly raise interest rates soon and we could see the NOK strengthen today. Elsewhere, weak employment figures hit the AUD while the JPY rose after the Bank of Japan also met expectations by holding off on deeper monetary easing.

Oil Prices Settle, Gold Lower

Meanwhile, oil prices settled after days of turbulence, after Saudi Arabia’s pledge to restore full production by end-September at facilities that were knocked out in drone and missile attacks last weekend. Elsewhere spot gold steadied after plummeting by as much as 1% yesterday on market uncertainty over how hawkish the Federal Reserve would be. A solid greenback will keep gold subdued for now, unless we have unexpected developments on the US/China or US/Iran front.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The content of this material and/or any information provided by BDSwiss Holding PLC should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument and it is not intended to provide a sufficient basis on which to make investment decisions, in any manner whatsoever. Any information, views or opinions presented in this material have been obtained or derived from sources believed by BDSwiss Research Department to be reliable, but BDSwiss makes no representation as to their accuracy or completeness. BDSwiss Holding PLC accepts no liability for loss arising from the use of this data and information. The data and information contained therein are for background purposes only and do not purport to be full or complete.

Analysis feed