All eyes on the BOE’s policy rate and statement
04.11.2021
- UK: Policy Rate and Statement Release
- U.S. Initial Jobless Claims
Yesterday, the three major U.S. stock indices all extended their gains, leading to a risk-on market characterized by rising stock prices, higher interest rates, and lower oil prices. Although gold rose immediately after yesterday’s FOMC meeting, it is currently trading around $1,774. The yield on the 10-year U.S. Treasury note has risen to 1.60%.
In the foreign exchange market, the pound is trading higher ahead of today’s scheduled policy rate announcement, with the GBP/USD pair rising from 1.361 to 1.369. From a technical perspective, the GBP/USD pair has formed an engulfing pattern on the daily chart. We need to carefully assess whether it will continue to rise while raising its lows without breaking below 1.340.
Today’s schedule includes German manufacturing orders at 4:00 PM, the UK construction PMI at 6:30 PM, the Eurozone producer price index at 7:00 PM, the US Challenger job cuts forecast at 8:30 PM, the UK interest rate decision and policy statement at 9:00 PM, a press conference by Bank of England Governor Bailey at 9:30 PM, and the Canadian trade balance,U.S. Initial Jobless Claims, U.S. Trade Balance, at 10:00 PM: Remarks by ECB President Lagarde, at 11:30 PM: U.S. Weekly Natural Gas Inventories, and at 2:50 AM: Remarks by BOE Deputy Governor Kanliff. While keeping an eye on the UK’s policy rate and statement, we will focus on the strength and weakness of European currencies.
Author: Keisuke Sakurai
