Sterling Weathers Dovish BoE Impact; Dollar Slips on Poor Jobless Claims
| Action Insight Mid-Day Report 5-9-24 |
Sterling Weathers Dovish BoE Impact; Dollar Slips on Poor Jobless Claims |
British pound experienced some volatility following BoE's rate decision, which revealed a dovish tilt in both the voting pattern and the language used. Sterling dipped initially, but then made a swift recovery, surviving as Governor Andrew Bailey dovish remarks in his follow-up press conference. Bailey stressed it's not time to cut interest yet. But for June, he's open to the idea, depending on upcoming economic data. He took a non-committal stance and described a June cut as "neither ruled out nor a fait accompli." However, with inflation projected to dip below target to 1.6% in three years, Bailey indicated the necessity for future rate cuts to make monetary policy less restrictive over the forecast period. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2468; (P) 1.2497; (R1) 1.2525; More... GBP/USD breached 1.2471 support briefly but quickly recovered. Intraday bias stays neutral first. Strong bounce from current level will retain near term bullishness. Further break of 1.2633 will resume the rebound from 1.2298 to 1.2708 resistance next. However, firm break of firm break of 1.2471 will indicate that this rebound has completed, and revive near term bearishness. Retest of 1.2298 should then be seen in this case. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | RICS Housing Price Balance Apr | -5% | 4% | -4% | -5% | | 23:50 | JPY | BoJ Summary of Opinions | | 03:00 | CNY | Trade Balance (USD) Apr | 72.4B | 81.4B | 58.6B | | 05:00 | JPY | Leading Economic Index Mar P | 111.4 | 111.3 | 111.8 | | 11:00 | GBP | BoE Interest Rate Decision | 5.25% | 5.25% | 5.25% | | 11:00 | GBP | MPC Official Bank Rate Votes | 0--2--7 | 0--1--8 | 0--1--8 | | 12:30 | USD | Initial Jobless Claims (May 3) | 231K | 210K | 208K | 209K | | 14:30 | USD | Natural Gas Storage | 87B | 59B |
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