Daily Analysis: BoE Eases The Level Of Quantitative Tightening

Our daily analysis of EUR, GBP and USD.

DAILY ANALYSIS

USD

• We saw a quiet day for the Dollar yesterday, however, the Feds 25 bp rate cut delivered on Wednesday, its first since December, have kept the markets busy with speculation surrounding the Greenback. Investors are still weighing in on the looming effect of Powell’s tone in the press conference following, keeping traders guessing on how aggressive the Fed may be for the rest of the year.
• Today there are no major economic data announcements, leaving the market relatively subdued, with traders on hold as they analyse how the Feds Interest Rate Decision affects the markets in the coming weeks.
• EUR/USD trades around the 1.1769 mark at the open this morning, with the pair down 0.53% from the previous day.

GBP

• The Bank of England announced its Interest Rate Decision yesterday, in which we saw it remain at its current level of 4%, this, alongside the BoE announcing a reduction with the release of bonds from a previous £100 billion a year to a new £70 billion signals a cautious stance from UK Policymakers as they attempt to reduce sticky inflation.
• Today UK Retail Sales for August was announced at 0.5%, higher than the anticipated figure of 0.4%, suggesting consumer demand remains resilient despite the tough financial state of the UK economy. However, this is not enough to help Sterling, as traders focus on the careful stance of the BoE.
• GBP/USD drops 0.85% following the Bank of England’s cautious stance on Quantitative Tightening, trading around 1.3499 at the open this morning.

EUR

• Yesterday was a quiet day for the Euro, with little occurring following the ECB’s Escriva and Nagel speeches, in which they both struck a cautious tone leaving the market speculating around the stance of the ECB.
• Today the Euro is being dragged down by the firmer Dollar, with traders speculating whether the ECB will need to push back.
• GBP/EUR trades around 1.1457 at the open this morning.

If you need a live exchange rate or quote, give us a call, email us, or request a call-back.

If you have not already registered with us the quote will be indicative.