Forex Today: Bank Of England Expected To Leave Interest Rate Unchanged -

Forex Today: Bank Of England Expected To Leave Interest Rate Unchanged

Nov 02, 2023Jeremy ParkinsonFinance0

The Bank of England will be holding a policy meeting today, at which it is expected to leave its Official Bank Rate unchanged at 5.25%.

The US Federal Reserve left its interest rate unchanged yesterday and signaled a prolonged pause in any rate hikes. Fed Chair Jerome Powell stated that good progress was being made on inflation, giving a dovish tilt in language. The result was a rally in stock markets, and a decline in US Dollar Yields and the US Dollar.

The releases yesterday of US ISM Manufacturing PMI and JOLTS Job Openings data came in a little weaker and stronger than expected, respectively. The jobs data suggests the US economy remains healthy, as was additionally evidenced by considerably stronger than expected GDP data last week.

The USD/JPY currency pair declined to trade well below the round number at ¥151 but seems to be finding support at about ¥150.40. Despite this, this currency pair especially, and the Japanese Yen in general, will remain interesting to trend traders. In the Forex market since the Tokyo open, the strongest major currency has been the New Zealand Dollar, while the US Dollar has been the weakest.

Stock markets have risen firmly since the FOMC meeting yesterday, especially in the USA, where most major indices such as the Nasdaq 100 closed more than 1% higher. It is worth noting though that stock markets longer-term trends remain quite bearish.

The price of Crude Oil has continued to weaken, reaching a new 2-month low yesterday, as despite Israel’s ground invasion of Gaza, the war has yet to widen, triggering more optimism that this war might be contained.

There will be a release later today of US Unemployment Claims data.

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