Central Banks Forex Market Intelligence News

BOE the main event on the agenda today

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The dollar remains in a solid spot after the Fed sent a hawkish message via Powell’s press conference yesterday. The initial statement reaction was quickly faded and the greenback now sits in a firm position to gain as the Fed decides not to relent in its resolute stance against inflation.

The greenback is little changed after yesterday’s advance but looks poised to push higher, with equities looking tepid and bond yields angling towards a further push higher – especially after Powell hinted that “the terminal top may be higher than previously thought”.

The post-Fed musings will be the key driver of trading sentiment today but the pound and gilts will also be in focus as the BOE comes into play, rounding off the latest central bank bonanza run in markets.

A 75 bps rate hike is expected to bring the bank rate to 3.00% but there are some slight doubts about that with minor calls of a 50 bps move. If the latter prevails, expect sterling to sell off in the aftermath. That will also impact the rates guidance/outlook moving forward – which is arguably the more important thing to pay attention to.

0730 GMT – Switzerland October CPI figures
0930 GMT – UK October final services, composite PMI
1000 GMT – Eurozone September unemployment rate
1130 GMT – US October Challenger job cuts, layoffs
1200 GMT – BOE announces November monetary policy decision

That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.