BoE decided to remain on hold

  1. BoE announced yesterday that it’s interest rate decision was to remain on hold at +0.50%.
  2. BoE clipped it’s inflation forecasts and cut its growth rate outlook for 2018 but BoE Governor Carney said he expected the economy to pick up speed despite negative signs.
  3. He also mentioned that BoE was sticking to its message that would probably need to rise once that recovery was clear.
  4. Currently GBP OIS imply a probability 59.32% for the next rate hike to be in September while analysts consider the end on 2018 as more probable.
  5. Should there be further headlines about BoE hiking rates earlier this year we could see the pound strengthening.

Israel strikes Iranian targets in Syria

  1. Israel said that it attacked a number of Iranian targets in Syria after Iranian forces fired rockets at Israeli held territory.
  2. The barrage was conducted after the US announced that they are leaving the Iranian nuclear deal and is considered as one of the heaviest since 2011 according to media.
  3. There was no immediate response from the Iranian side and most countries condemned the Iranian attack or called on the two sides to calm down.
  4. The attack could be a regarded as a once off event for now, but any further instability in the region could increase oil prices as well as strengthen safe havens.

Today’s other economic highlights

  • Canada: Employment Change, Survey:+17.4k Prior: +32.3k, 12:30 (GMT), could weaken the CAD
  • Unemployment Rate, Survey: 5.8% Prior: 5.8%, 12:30 (GMT), neutral for CAD
  • US: U.Michigan Consumer Sentiment, Survey: 98.5 Prior: 98.8, 12:30 (GMT), neutral to bearish for USD
  • Speakers: FOMC member James Bullard (12:30, GMT) and ECB president Mario Draghi (13:15, GMT) speak.

IronFX Daily Market Analysis ‘May 11th’

1

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4.9 rating based on 1,166 ratings
4.9/5 1166
2

DerivDeriv

4.9 rating based on 143 ratings
4.9/5 143
3

LQDFXLQDFX

3.5 rating based on 93 ratings
3.5/5 93
4

FBSFBS

3.6 rating based on 99 ratings
3.6/5 99
5

FXTMFXTM

3.9 rating based on 43 ratings
3.9/5 43
1

PrimeBitPrimeBit

3.9 rating based on 7,130 ratings
3.9/5 7130
2

BinanceBinance

4.3 rating based on 7,662 ratings
4.3/5 7662
3

bybitbybit

4.2 rating based on 3,323 ratings
4.2/5 3323
4

XBTFXXBTFX

1.9 rating based on 4,447 ratings
1.9/5 4447
5

WisebitcoinWisebitcoin

3.3 rating based on 4,701 ratings
3.3/5 4701