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


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.  

AUDUSD

 

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

Latest Forex Analysis

Editors’ Picks

EUR/USD at daily lows, dragged by Sterling

Turmoil around Brexit and the absence of any other relevant catalyst weighs on the common currency, EUR/USD battling with 1.1120.

EUR/USD News

GBP/USD loses 1.2900 as Parliament says “NO”

The UK Parliament has rejected PM Johnson’s time table, lifting odds of an upcoming election in the kingdom. Volatile trading ahead of more clarity as the drama continues.

GBP/USD News

USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.

USD/JPY News

Top 3 price prediction BTC, ETH, XRP: CFTC takes a surprisingly bold step to move cryptos forward

The CFTC is open to Ethereum futures without anyone picking-up the ball. XRP is currently the only bullish option currently in the Top Three. Current volatility levels have last been seen in May.

Read more

Gold erases daily gains, eyes $1480

Gold failed to hold to gains and pulled back, approaching again the $1480 area. Earlier today the ounce rose to $1488 and as of writing trades at $1483, flat for the day but now with a bearish intraday bias.

Gold News

Forex Majors

Cryptocurrencies

Signatures