Spotlight on BoE meeting

March 18, 2021

Another central bank is set to come into focus, with the BoE holding its latest interest rate meeting.

The latest Fed meeting sent the USD packing, with major pairs ending the session strongly. The EURUSD opened the day at $1.19015 and slipped to a low of $1.18854 mid-session. Late-session trading saw the euro rally to a high of $1.19848. It is now trading at $1.19799. The GBPUSD started the session at $1.38912 and was rather flat for most of the day, dipping to lows of $1.38495 just prior to the Fed’s meeting. It surged off those lows, peaking at $1.39707 just before the close. It is now trading at the same level.

Indices benefitted from the Fed meeting as well, with the Dow and Dax ending the day higher. The Dow began the day at 32,891.54 and declined to an early low of 32,809.42. It remained subdued for a large portion of the day before climbing late in the session, eventually hitting a high of 33,077.91. That momentum has continued into the new session and it is currently trading at 33,161.21. The Dax followed suit when it opened at 14,565.47. It slid to an early low of 14,534.26 and remained steady throughout mid-session trading. It rallied to a late high of 14,689.59 before closing at 14,655.27.

The day ahead sees the BoE come into focus as they wrap up their latest interest rate meeting. Like the Fed Reserve, the BoE are expected to leave rates on hold. Commentary by the BoE Governor will come into focus as the economic recovery from shutdowns continues.

Other data published today includes:

Canada – NHPI, ADP Non-Farm Employment Change

US – Unemployment Claims, Philly Fed Manufacturing Index, CB Leading Index, Natural Gas Storage

Australia – Employment Change, Unemployment Rate, RBA Bulletin, RBA Assistant Governor Chris Kent speaks

Europe – European, Italian and Swiss Trade Balances, Swiss PPI, ECB President Christine Legarde speaks

UK – Monetary Policy Summary, Asset Purchase Facility, GfK Consumer Confidence, MPC Member Jon Cunliffe speaks


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