UK interest rate meeting tonight

November 2, 2017

Another hectic day for markets with plenty of data set for release. The night is highlighted by the BoE’s interest rate meeting.

The euro pulled back slightly during overnight trading, with the USD firm after a predictable Fed Reserve interest rate meeting this morning. The Fed left rates on hold, but left the door ajar for a rate hike in December. The EUR/USD is currently trading at $1.1624, down from the $1.1653 it was trading at this time yesterday. The pound continues to trade in the $1.32 region ahead of the UK’s interest rate meeting tonight. It is currently trading at $1.3253.

Stocks had a field day last night as the Dow jumped out of the gates, before pulling back, but still managed to close at 23,435.01, up 57.77 points up (+0.25%). The S&P 500 ended the session up 4.10 points (+0.16%) to 2,579.36. However, the NASDAQ bucked the trend, closing the session down 11.14 points (-0.17%) to 6,716.53. The DAX was on fire last night, seemingly unstoppable as it blasted out of the blocks after the market was closed the day before. It added an astonishing 235.94 points (+1.78%) to close at 13,465.51.

Gold picked up a few dollars overnight as traders saw the precious metal as a bargain. It is currently trading at $1,276.10. It was trading at $1,271.10 this time yesterday, however it did reach as high as $1,280.

Looking to today and the most significant event is the BoE interest rate meeting. It is forecast that the central bank will lift rates by 0.25%. This will likely push the pound higher. But will the meeting go as expected? Will the central bank lift rates, or could they do they do the unexpected and leave rates on hold? Leaving rates on hold may cause so volatility as it would go against market expectations. Other data set for release today include:

Australia – Trade Balance, Building Approvals

Japan – Monetary Base

Europe – SECO Consumer Climate, Swiss Retail Sales, Spanish & Italian Manufacturing PMIs, European, German & French Final Manufacturing PMIs, German Unemployment Change

UK – Construction PMI, Asset Purchaser Facility, BoE Inflation Report, BoE Governor Mark Carney Speaks

US – Challenger Job Cuts, Prelim Non-Farm Productivity, Prelim Unit Labour Costs, Natural Gas Storage, Fed Members Jerome Powell and William Dudley speak.