Market Update
- Posted by currencies in Bank of England, Currency, Dollar, Economy, EUR, Fed, GBP, Rate Cuts, Sterling, UK, Uncategorised
- January 29, 2024
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Its a busy week ahead in terms of data and central bank meetings. US and the Federal Reserve hold their meeting on Wednesday. The latest announcements is that members have stopped saying that they need to keep rates higher for longer. Wednesday could be an indication of a more clear view of when a first rate cut can take place. Potentially creating a similar scenario that we saw from ECB last week when they mentioned that April is not ruled out, initially shifting market speculations to the summer.
Bank of England will follow suit on Thursday holding their interest rate decision. Members from Bank of England have so far not been talking openly of their indications and been saying that they will hold rates higher for longer, until they feel comfortable that inflation levels are coming down naturally.
Tensions are rising after an attack in the Middle East on a US warship and base. It’s the first time US soldiers were killed in the region since the conflict between Israel and Palestine started back in October. Accusations are now flying between US and Iran, building pressure on an escalation in the area. President Biden said that there will be repercussions for all parties involved in the attack.
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