General News

Market Awaits BOE Rate Decision

February 8, 2018
On Thursday, the Greenback settled at two-week highs vs. a basket of major currencies after U.S. Senate leaders announced a two-year budget agreement to raise government spending by almost $300 billion.
• The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up by 0.29% at 90.42
The Single currency fell by 0.27% vs. the USD, to settle at $1.2229, which was the weakest level since 23rd January, negatively affected by a strong USD. Data earlier showed that the Germany’s trade surplus last year went down to 244.9 billion euros, the lowest level for the first time since 2009.
The Sterling pound fell by 0.11% vs. the USD to settle at $1.3861. On the release front, market players are awaiting Bank of England Bank Rate decision, which is expected to hit 0.50%. Besides rate decisions, traders are also awaiting Bank of England Inflation Report.
Against the JPY, the USD rose by 0.28%, to settle at ¥109.69. No major report are due from Japan today.
Early on Thursday, Gold prices slipped, touching their lowest level in a month as the U.S. dollar recovered amid strong anticipations of more U.S. interest rate hikes during the year. Gold Futures – Apr 18 (GCJ8), down by 0.17%, to settle at $1,312.30.
Earlier today, Oil prices declined further, amid concerns over rising the U.S. oil production, which could dampen OPEC’s efforts to rid the market of excess supplies. Oil fell after data showed U.S. oil production touched the 10 million barrels per day (bpd) mark last week. Crude Oil WTI Futures – Mar 18 (CLH8) fell as much as 0.32%, to settle at $61.59, and Brent Oil Futures – Apr 18 (LCOJ8) was down by 0.18% at $61.59.

The most important economic events:
• GBP Bank of England Bank Rate (8 FEB): (GMT 12:00) – Important – Forecast (0.50%) – Previous (0.50%).
• GBP BOE Asset Purchase Target (FEB): (GMT 12:00) – Important – Forecast (435b) – Previous (435b).
• GBP Bank of England Inflation Report: (GMT 12:00) – Important
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