Investors Expect the Decision of the Bank of England

Yesterday, the majors responded rather poorly to the Fed’s meeting. The dollar index (#DX) closed the trading session with a slight increase (+0.29%). The Fed, as expected, kept the range of the key interest rate at the previous level of 1.00%1.25%. According to the Central Bank statements, the economy is stable, and the labor market continues to show positive dynamics. The preliminary report from ADP was optimistic. In October, 235,000 new jobs were created in the nonagricultural sector of the United States. Market expectations were at 200,000. At the same time, the US manufacturing activity index fell from 60.8 to 58.7.

Today, the key event will be the meeting of the Bank of England. Earlier, Central Bank officials were concerned about the significant acceleration of inflation, which could affect the living standard in the country. It is expected that the regulator will raise the key interest rate by 25 basis points to 0.50%. We also recommend you to pay attention to the comments of the Bank of England representatives.

At the moment, the “black gold” prices are stable. Futures for the WTI crude oil are consolidating in the range of $54.00$54.30 per barrel.

Market Indicators

Major US stock indices showed mixed dynamics: #SPY (+0.13%), #DIA (+0.24%), #QQQ (0.03%).

The 10year US government bonds yield is recovering after a sharp decline during yesterday’s trading. At the moment the indicator is at the level of 2.37%.

At 14:00 (GMT+2:00), the Bank of England will decide on the interest rate.

We recommend you to pay attention to the following statistics:

Reports on business activity in the manufacturing sector and the labor market in Germany at 10:55 (GMT+2:00);The index of business activity in the construction sector in the UK at 11:30 (GMT+2:00);The preliminary data on the labor market in the US at 14:30 (GMT+2:00).

by JustMarkets, 2017.11.02