ForexLive European FX news wrap: BOE surprises with 50 bps rate hike

0
(0)
Headlines:

Markets:

  • GBP leads, AUD lags on the day
  • European equities lower; S&P 500 futures down 0.3%
  • US 10-year yields up 2.7 bps to 3.75%
  • Gold down 0.4% to $1,926.04
  • WTI crude down 2.1% to $70.99
  • Bitcoin flat at $29,983

It was all about central banks today but the BOE stole the spotlight with a somewhat surprising 50 bps move to bring the bank rate to 5.00%.

The more hawkish move came after the hotter than expected UK inflation report yesterday, which suggests that the BOE is taking on the issue with a ‚go big or go home‘ approach. On the one hand, it speaks to their commitment and credibility in tackling inflation. On the other, such persistence could end up breaking something along the way in the economy.

For now, the pound got a brief jump on the decision with GBP/USD moving up from 1.2780 to 1.2835 before giving all of that back. I outlined some reasons for that move here and that post details better how markets are feeling right now just after the suprise.

The SNB was also on the agenda but the 25 bps rate hike there was rather straightforward and the communique was consistent with what markets were expecting. The franc is little changed as a result with USD/CHF sitting around 0.8940-50 currently with the dollar also keeping steady.

There isn’t much appetite among major currencies so far today but keep an eye out on a further risk rotation in broader markets. There has been a consistent theme of equities selling this week and things look to be continuing today as well. Some food for thought here.

This article was written by Justin Low at www.forexlive.com.

Go to Forexlive

Wie hilfreich war dieser Beitrag?

Klicke auf die Sterne um zu bewerten!

Durchschnittliche Bewertung 0 / 5. Anzahl Bewertungen: 0

Bisher keine Bewertungen! Sei der Erste, der diesen Beitrag bewertet.

Es tut uns leid, dass der Beitrag für dich nicht hilfreich war!

Lasse uns diesen Beitrag verbessern!

Wie können wir diesen Beitrag verbessern?