The British central bank was in the center of attention yesterday, but the bank didn’t change its benchmark rate as investors expected. The decision sparked a strong rally in the Pound but the currency finished off its highs as the bank didn’t cut its benchmark interest as investors anticipated. The Euro initially rallied after the decision, but it faded later on against its major counterparts, to finish close to unchanged.

Commodities were mixed yesterday, as precious metals drifted lower yet again, but oil managed to gain after the steep drop on Wednesday. Commodity currencies were mixed, as the Australian Dollar and the Canadian Dollar gained on the USD, but the New Zealand Dollar declined sharply. The Japanese Yen lost ground again, as traders were still pricing in another round of unconventional monetary and fiscal easing by the Bank of Japan and the government.

EUR/JPY (current price: 116.78)

The pair reached strong resistance after rising by more than 700 pips to 117 in just four days from its fresh 4-year lows. The Euro is now trading just below the pre-Brexit level, as the blowout victory of Prime Minister Abe’s party caused a strong rally. The common currency jumped against the Yen following the BOE decision, and it rose aain in early trading today, almost reaching the strong resistance zone near 118.70.

Our assessment: The pair got back to its prior trend channel aftrr the huge rally this week and further gains are possible following yesterday’s BOE meeting.

GBP/USD (current price: 1.3472)

The Pound is trading just below the crucial 1.3550 resistance this morning after the surprising decision by the Bank of England. The central bank changed its economic outlook following the developments after the Brexit vote. The bank will likely support the economy with new measures later this year, but the current decision still pushed the currency higher on Thursday.

Our assessment: GBP/USD is now 5% off its recent lows and traders will probably focus on the 1.3550 level later on this week .

NZD/USD (current price: 0.7135)

The New Zealand Dollar declined strongly in early trading, and the pair extended losses throughout the day and this morning in early trading as well. Negative data regarding the dairy market and the New Zealand economy sparked the decline that pushed the pair below several key support levels. The RBNZ now seems more likely to cut interest rates, especiallygiventhe bearish Chinese trade data.

Our assessment: NZD/USD is now close to the crucial 0.70 level that could serve as support if the cutrent drop continues.

Gold (current price: $1330.00) and Silver (current price: $20.45)                               

Preciuos metals had a negative day as the Bank of England’s decision hurt both gold and silver, although silver held up much better. Gold is now way below the crucial 1350 level, while silver is still trading above 20, evenafter the protracted correction. The weakness of the Yen also hurts the safa haven assets.

Our assessment: Silver might start a new leg up shouldrisk assetsfinally turn lower after two weeks of gains.

Economic Releases

Today will be another busy day concerning economic releases in Europe and North America as well. The day will be kicked-off by the Italian Trade Balance number followed by the Eurozone Final CPI, and theBritish Construction Output. Later on BOE governor Carney will hold a speech, following up on yesterday’s rate decision.  The afternoon session will be highlighted by the release of the U.S. Retail Sales and CPI readings, along with the Industrial Production, and the UOM Consumer Sentiment Index.Canadian Manufacturing Sales will also be published during Wall Street hours.