Check out today’s market highlights!
This article is originally referred from IronFX News.
BoE remains on hold with a 6-3 vote count
- BoE kept it’s interest rate unchanged at +0.50% yesterday as it was widely expected.
- The accompanying statement provided comments regarding inflation, the GDP, household spending and the Banks QE program.
- In general, it could be characterized as neutral to hawkish.
- The surprise element of the decision was that one MPC member switched sides in favor for a rate hike and the vote count was 6-3, underscoring a hawkish element of the decision.
- Overall the decision provided a strong support for the pound as anticipations for an August rate hike increased and we could see the pound riding that wave for a few days.
USD weakens against major rivals
- USD weakened against a number of other currencies yesterday and during today’s Asian morning.
- Analysts, cite the drop of the Philly Fed Business index yesterday, as the main reason for the USD slipping.
- The weak Philly index was cited as a reinforcement of fears that trade wars would hurt the US economic outlook.
- Also the drop could have contributed to the slight weakening of the US 10 year treasury yields adding further pressure to the USD.
- Should the yields continue to drop we could see USD continuing to slip for the next few days.
Original Source: IronFX News