The Bullet Report: Bank of England To Cut Rates today? GBPUSD in focus once again.

BoE rate decision will be the main focus of the day. The central bank is expected to cut interest rate for the first time since 2009 to cushion the impact of Brexit to the economy. There are talks that BoE would further ease monetary policies by reviving the asset purchase program later in August. Also in the UK, Theresa May became the new prime minister yesterday, the second female in history after Margaret Thatcher. Boris Johnson (no joke), former London Mayor and the leader of the “leave” camp, was named Foreign Secretary.

Currencies: Currencies: Yesterday the markets were mixed. On the one hand GBPUSD dropped on news that Boris Johnson was appointed Foreign Secretary from 1.3330 to almost 1.31 and on the other hand EURUSD rose to 1.1125. Today both pairs are rising with EUR at 1.1115 and GBP 1.3218 at time of writing. Next Resistance levels are 1.3235 / 1.3330 for GBPUSD and 1.1125 / 1.1165 for the EURUSD. The JPY, which slid 3.9 % over the first three days of this week, extended losses by 0.2 % to 104.75.

Stocks: US equities edged higher with DJIA close up 0.13% at 18372.12 while S&P 500 closed up 0.01% at 2152.43, both at new records. Nikkei follows and is trading up 0.62% at the time of writing. Wall Street shares have quickly recovered the losses triggered by Britain’s vote on June 23 to leave the European Union, driven by solid U.S. economic data. Financial markets expect the Bank of England to announce a rate cut later today. Governor Mark Carney has hinted he may ease policy to cushion the economy from the Brexit shock.

Oil and Gold: Oil prices fell more than 3% yesterday, extending losses and hitting session lows, after US government reported a smaller than expected crude inventory draw for last week. U.S crude oil futures settled down $2.05, or 4.4%, to $44.75 per barrel. Brent crude recovered earlier losses, and traded up 0.37%, or 17 cents, at $46.43. The yellow metal has broken major support $1335 (Jul 8th low) and declined till $1327.It is currently trading around $1335. The yellow metal is still bullish as long as support $1316 (21 day MA) holds.

The post The Bullet Report: Bank of England To Cut Rates today? GBPUSD in focus once again. appeared first on Forex.Info.

Source:: The Bullet Report: Bank of England To Cut Rates today? GBPUSD in focus once again.

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