Daily Report: BoE decided to remain on hold & Israel strikes Iranian targets in Syria
The last day of the week. Here are the main market movers of the day.
BoE decided to remain on hold
- BoE announced yesterday that it’s interest rate decision was to remain on hold at +0.50%.
- 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.
- He also mentioned that BoE was sticking to its message that would probably need to rise once that recovery was clear.
- 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.
- Should there be further headlines about BoE hiking rates earlier this year we could see the pound strengthening.
Israel strikes Iranian targets in Syria
- Israel said that it attacked a number of Iranian targets in Syria after Iranian forces fired rockets at Israeli held territory.
- 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.
- 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.
- 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.