Market's Focus Turns to UK Interest Rate Decision while Dollar Stumble on Dovish Fed Statement

Daily Update - 2nd May 2019

Yesterday’s Market

• US ISM Manufacturing, FED Interest Rate Decision & Monetary Policy Statement

Yesterday’s Explained

All reports from US had a Negative outlook and with further statements being released by Jerome Powell on the current transitory stage for the Fed on their future Rate Outlook. Things went downhill for the Dollar on the late session of Wednesday but picked up later on during the Asian and Australian Markets.

 

Today’s Market

• Bank of England Interest Rate Decision
• US Initial Jobless Claims

Today’s Focus

The Bank of England is still on course to raise interest rates, had it not been for the high level of uncertainty due to Brexit. Does the delay in the UK’s exit from April to October provide more certainty and raises the chances of a rate rise? Or does the ongoing delay limit the chances of any change? The BOE is expected to leave its interest rate unchanged at 0.75% but the contents of the meeting minutes and the crucial Quarterly Inflation Report will be eyed. Carney’s answers to reporters’ questions will also be of high interest.

BoE Interest Rate Decision is announced by the Bank of England which will be based on the current Economic Growth of UK & Mr. Mark Carney’s future projections. The Initial Jobless Claims released by the US Department of Labor a larger than expected number indicates weakness in this market which influences the strength and direction of the US economy and vice versa.