Yesterday, the Bank of England raised rates via a 9-0 vote, but Governor Carney’s remarks may have interpreted as somewhat more cautious than the vote result suggested and thus, the pound tumbled. As for today, the spotlight is likely to fall on the US employment report for July. Following Wednesday’s upbeat FOMC statement, a solid report could further strengthen the case for two more hikes by the end of the year.
POUND UNDER PRESSURE FOLLOWING THE BOE DECISION
The pound traded lower against most of its G10 peers on Thursday. It gained only SEK and NZD, while it traded virtually unchanged against NOK. The British currency underperformed the most against USD, CAD and JPY.
Yesterday, the big event for pound traders was the Bank of England policy decision. The Bank decided to increase interest rates to 0.75% as was widely anticipated, but via a 9-0 vote instead of 7-2 as the consensus suggested. In the summary accompanying the decision, officials reiterated that if the economy continues to...
Read the full financial markets daily report on JFD Research.