Following big falls in some risk-sensitive assets on the back of North Korea tensions, a number of global stock indices and dollar currency pairs ended the session with impressive reversal-looking technical patterns as the dip buyers evidently stepped in to take advantage of the lower prices (see the technical outlook section below).
The Bank of England has left interest rates unchanged with only two of its MPC members voting in favour of a hike this month.
Gold has been undermined by rising government bond yields owing to major central banks generally turning more hawkish while the still-buoyant equity markets means there has been reduced demand for the perceived safe haven asset.
Gold has been undermined by rising government bond yields owing to major central banks generally turning more hawkish while the still-buoyant equity markets means there has been reduced demand for the perceived safe haven asset.
The EURUSD pair initially dropped a bit on Thursday, but then shot towards the 1.14 level above.
The ascending channel on Cable’s daily time frame is still intact and price is heading towards the resistance around 1.3400. A countertrend opportunity could arise if reversal candlesticks form around this area.
The Bank of England’s Monetary Policy Committee is almost certain to keep interest rates unchanged today despite inflation rising well above its 2% target.
The GBPUSD started the day how it ended yesterday: higher. Speculators were still felling bullish after the stronger UK inflation figures had raised the prospects that the Bank of England may turn hawkish.
Today’s going to be a quieter session in terms of economic news, ahead of key events later this week. There are however at least three factors that need to be watched closely.
Thanks to soft US economic data of late, expectations about an aggressive rate hiking cycle by the Fed has diminished.
