Forex Today: Markets Await Bank of England Rate Hike

Adam Lemon

Forex markets are relatively quiet ahead of the 0.50% rate hike expected from the Bank of England later today.

  • The Forex market is relatively quiet ahead of today’s scheduled monetary policy release from the Bank of England, which is expected to see the Bank raise its base rate by 0.50% to 1.75%. Markets will also be interested to hear whether the Bank’s inflation forecast will change. Currently, the Australian and New Zealand Dollars are the strongest major currencies.
  • The S&P 500 Index rose again yesterday, continuing a weeks-long rally to approach a 2-month high price. Although the US is in recession according to the commonly accepted definition, the body which officially declares whether the US in is recession has not yet done so, probably because consumer demand and job creation seem healthy enough to suggest a relatively soft landing.

  • BTC/USD has resumed its very slow, weak upwards trend of previous weeks, being held by a bullish price channel.
  • The price of WTI Crude Oil remains in a firm downtrend, with the price trading as low as $90 per barrel
  • Yesterday’s release of US ISM Services PMI data showed a buoyant US services sector.
  • Fed Member Kashkari stated that the US will be unable to reduce inflation to its 2% target for years, giving a more pessimistic outlook which is not shared by the Fed as a consensus.
  • Daily new coronavirus cases globally dropped last week for the second consecutive week, reversing the earlier trend of an increasing number of confirmed cases.
  • It is estimated that 67% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 7.4% of the global population is confirmed to have contracted the virus at some time, although the true number is highly likely to be much larger.  
  • Total confirmed new coronavirus cases worldwide stand at over 584.3 million with an average case fatality rate of 1.10%.  
  • The rate of new coronavirus infections appears to now be most significantly increasing in Iran, Japan, South Korea, Kosovo, Montenegro, North Macedonia, Romania, and Serbia. 
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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