Home Tools BoE hiked; US jobless claims add downside risk to NFP

BoE hiked; US jobless claims add downside risk to NFP

21
0






BoE left the door open to further 50 bp steps. It also warned that inflation pressures have intensified and are expected to rise to just over 13% in 2022 and “to remain at very elevated levels throughout much of 2023, before falling to the 2% target two years ahead”. Additional 50 bp moves are not ruled out then. The statement also flagged that the MPC is “provisionally minded to commence gilt sales shortly after its September meeting”.

US initial jobless claims edged up 6k to 260k in the week ended July 30, holding elevated levels and above 200k since mid-May.  EGBs are rallying after shrugging off the BoE’s 50 bp rate hike and the renewed commitment to act “forcefully” on inflation risks if needed. Stock markets meanwhile are posting broad gains across Europe and the FTSE 100, which moved sideways going into the BoE announcement, is now up 0.4%, while the DAX has held on to a better than 1% gain.

 

 

Click here to access our Economic Calendar

Stuart Cowell

Head Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.






Previous articleMarket Update – August 4 – BOE Day!

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.


Previous articleUSD/CAD Price Analysis: Bears could be about to pounce
Next articleTRADING ACCORDING TO THE SIGNALS OF THE AUTHOR’S INDICATOR ON THE EURGBP CURRENCY PAIR. EASY MONEY! – Analytics & Forecasts – 4 August 2022