BOE the main event on the agenda today

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

The greenback was little changed after yesterday’s advance, but looks set to head higher, with stocks looking tepid and bond yields pointing to another push higher – especially after Powell hinted that “terminal peak may be higher than previously thought”.

Post-Fed musings will be the main driver of trade sentiment today, but the pound and gilts will also be the center of attention when the BOE comes into play, completing the central bank’s latest run on the markets.

A 75 bps rate hike should take the Bank Rate to 3.00%, but there are slight doubts on that with minor calls for a 50 bps move. If the latter prevails, expect the pound to sell off in stride. This will also impact rate forecasts/outlooks going forward – which is arguably the most important thing to pay attention to.

07:30 GMT – CPI figures for October in Switzerland
09:30 GMT – UK October Ending Services, Composite PMI
1000 GMT – Eurozone unemployment rate in September
11:30 GMT – October Challenger job cuts and layoffs in the US
12:00 GMT – BOE announces monetary policy decision in November

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


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