Bank of England maintains interest rates, GBP moves higher…
The BoE held the level of UK interest rates at 0.75% yesterday, steering the ship steady, ensuring more time to observe the economy and the effects of last month’s general election plus the official departure from the EU tonight. The Bank sounded a cautious message but acknowledged the recent rebound in PMIs and the solid labour market.
The pound caught a bid higher, pushing towards the $1.31 and €1.19 figures against the US dollar and euro, respectively. The true test of sterling’s resilience will arrive next week when official January PMIs are released and when the new month of data releases commence. If the UK economy can display a solid response to recent events then sterling may have the ammunition to launch a larger rally. The detail is in the data.
Today sees a number of interesting economic releases to close what’s been an exciting week of trade. German retail sales will begin the session followed by eurozone CPI numbers. When New York arrives at their desks we’ll be treated to Chicago PMI and Michigan consumer sentiment numbers.
Have a good weekend.
Written by Viv Savani. 8:21am, January 31st 2020
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