Market Anticipates for BOE & Brexit today with NFP on back burner for Friday

Daily Update - 1st November 2018

Yesterday’s Focus

• JPY Bank of Japan Interest Rate Decision
• EUR Retail Sales, Unemployment Rate, Consumer Price Index
• USD ADP Employment Change

Yesterday’s Explained

The American dollar strengthened against most major rivals, ending the day with an upbeat tone across the board, stabilizing in the US afternoon around 1.1320, as the common currency remained out of market favor.

Italian Economy Minister Tria was on the wires, reiterating that they don't plan to leave the EU "in any way," but would rather need to convince their European partners on the plan to run a deficit of 2.4%.

The Union released preliminary October inflation beating expectations with 1.1%, however, it's still way below the ECB's target, failing to limb some EUR demand.

In the US the ADP survey showed that the private sector added 227K new jobs in October, largely surpassing the 189K expected.

The GBP/USD pair jumped to 1.2830 mid-US afternoon, its highest in two days, following comments from UK's Brexit Secretary Raab, who stated " I would be happy to give evidence to the Committee when a deal is finalized and currently expect 21 November to be suitable," in a letter to Commons. Raab has been requested to appear before the parliament's Brexit committee that day

Shortly after, a spokesman from PM May said that the government wants to reach a Brexit deal as soon as possible and that they are working to achieve that, giving no further explanations.

 

Today’s Focus

• GBP BoE Interest Rate Decision, Monetary Policy Summary, BoE Governor Carney’s Speech
• USD Nonfarm Productivity, Markit Manufacturing PMI

Today's Market

The EU macroeconomic calendar is quite scarce this Thursday, with the focus on the Bank of England monetary policy meeting, during London trading hours. The US, however, will offer multiple employment-related figures, including weekly unemployment claims and quarterly Union Labor Costs and Nonfarm Productivity. The US will also release the official and the Markit Manufacturing PMI for October.

The Bank of England is having a Super Thursday, a day in which not only policymakers unveil their latest monetary policy decisions, but also present the quarterly inflation report. Also, BOE's Governor Carney is set to offer a speech afterward. No changes are expected on the current policy, but rather the market will pay attention to how concerned the central bank is about protectionism and a possible no-Brexit deal.