Sterling continued to show its short term ‘safe haven’ status having a firm hold across the board, helped by the ongoing tariff situation with Trump and the European Union expected to be hit with the ‘Trump tariff’ sooner rather than later. The current trading relationship between the UK and US stands neutral and is working to the UK’s advantage for now.
The Bank of England are to release their interest rate decision this afternoon with expectations to be at 25 basis points with further cuts to follow. If the BoE announces as expected, markets will turn to any clues or indications regarding further plans to cut alongside the vote split between members, as in the past, if the vote hasn’t been somewhat unanimous it has sparked heightened volatility.
Baileys speech and the Banks Economic forecasts will also play a key part for any move seen, as some analysts have suggested that if there is more of a focus on growth rather than inflation this could be punishing on the Pound.
Over in the US, Trump is still flexing his muscles surrounding his tariffs and other proposed potential implications surrounding global trade, however the markets focus will soon shift to the Non-Farm Payroll print due out tomorrow which typically influences the USD, even for a short period once released.
Eyes today are very much on the Bank of England and its rate decision.
-Oakleigh Exchange Partners-