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Forex Today: The Bank of England is expected to leave its interest rate unchanged

Forex Today: The Bank of England is expected to leave its interest rate unchanged

The US Federal Reserve left rates unchanged as expected at yesterday's policy meeting and signaled there would be no hikes for a while, effectively ruling out any intervention before 2024, boosting stock markets.

➡️ The Bank of England will hold a policy meeting today, at which it is expected to leave the key interest rate unchanged at 5.25%.

➡️ Yesterday the US Federal Reserve left the interest rate unchanged and signaled a prolonged pause in any rate hikes. Fed Chair Jerome Powell said good progress is being made on the inflation front, using accommodative language. The result was a rally in stock markets and a decline in US dollar yields and the US dollar.

➡️ Data released yesterday from the ISM US Manufacturing PMI and JOLTS job openings data were slightly weaker and stronger than expected, respectively. Employment data suggests that the US economy remains healthy, as also evidenced by last week's considerably stronger-than-expected GDP data.

➡️ The USD/JPY currency pair it has fallen well below the round number of ¥151, but appears to be finding support at around ¥150.40. Despite this, this currency pair in particular, and the Japanese yen in general, will remain interesting for trend traders. In the Forex market since Tokyo opened, the strongest major currency has been the New Zealand dollar, while the US dollar has been the weakest.

➡️ Stock markets recorded a sharp rise after yesterday's FOMC meeting, especially in the United States, where most of the main indices such as the NASDAQ 100 they closed higher than 1%. It is worth noting, however, that long-term trends in stock markets remain quite bearish.

➡️ The price of crude oil continued to weaken, reaching a new 2-month low yesterday, because despite Israel's ground invasion of Gaza, the war has not yet spread, triggering further optimism that this war can be contained.

➡️ US unemployment claims data will be released later today.

Credit by DailyForex.com

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