IronFX Daily Commentary by Charalambos Pissouros | 14/07/2016
July 14, 2016 8:50 am
Will the Bank of England strike pre-emptively? • The BoE has signalled that it is ready to act following the “Brexit” vote. The market is expecting a 25bps rate cut today. • However, there is a chance that the Bank holds for now, and instead opts to send a dovish signal that it will ease in August. • If the Bank eases today, this could weaken GBP. If it remains on hold, we expect any positive reaction to provide a renewed selling opportunity.
Bank of Canada on hold, remains neutral • The BoC remained on hold and maintained a neutral tone overall. • CAD strengthened on the decision. Its near-term direction may depend on global risk sentiment and oil prices. • Given the Bank’s neutrality, we exp. CAD to strengthen in the long-run.
Today: • US: PPI for Jun. and initial jobless claims for the week ended Jul. 8th. • Speakers: Atlanta Fed President Dennis Lockhart and Kansas Fed President Esther George.
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Will the Bank of England strike pre-emptively?
• The BoE has signalled that it is ready to act following the “Brexit” vote. The market is expecting a 25bps rate cut today.
• However, there is a chance that the Bank holds for now, and instead opts to send a dovish signal that it will ease in August.
• If the Bank eases today, this could weaken GBP. If it remains on hold, we expect any positive reaction to provide a renewed selling opportunity.
Bank of Canada on hold, remains neutral
• The BoC remained on hold and maintained a neutral tone overall.
• CAD strengthened on the decision. Its near-term direction may depend on global risk sentiment and oil prices.
• Given the Bank’s neutrality, we exp. CAD to strengthen in the long-run.
Today:
• US: PPI for Jun. and initial jobless claims for the week ended Jul. 8th.
• Speakers: Atlanta Fed President Dennis Lockhart and Kansas Fed President Esther George.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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