Attention on the UK’s Policy Rate and Policy Statement

Attention Turns to the UK’s Policy Rate and Policy Statement

24.06.2021

Yesterday, in the U.S. markets, the Nasdaq extended its gains for the third consecutive day, hitting a new all-time high and closing at 14,271 points, up 0.13% from the previous day, while stocks, interest rates, and commodities all traded sideways in a calm market.The fear index (VIX) has settled around 16.3, while WTI crude oil is trading sideways around 73.1. BTC/USD is trading in the $32,000 range.

In the foreign exchange market, cross-yen pairs have been weak during today’s Asian trading session, with GBP/JPY falling from 155.15 to 154.67. GBP/JPY has not yet fully recovered from last week’s 350-pip decline, and the market direction is likely to be determined by whether today’s policy rate announcement and statement include any comments on tapering.

Today’s economic indicators include Turkey’s capacity utilization rate at 16:00, Germany’s IFO Business Climate Index at 17:00, South Africa’s Producer Price Index at 18:30, and the UK’sBOE policy rate announcement, 21:30: U.S. initial jobless claims and U.S. wholesale inventories, U.S. Q1 GDP (final reading), U.S. core PCE deflator, U.S. durable goods orders (flash estimate), 22:00: U.S. Barkin:Richmond Fed President, at 22:30: U.S. Bostic: Atlanta Fed President, at 24:00: U.S. Williams: NY Fed President, and at 26:00: U.S. 7-year Treasury auction.We will be closely monitoring whether the pound’s strength continues following today’s UK policy rate announcement.