The Bank of England has left rates unchanged at 5.25% with a 5-4 vote split after CPI dropped more than expected in August
GBP drops after a softer CPI reading scares investors about the BoE intentions. JPY on the lookout for further policy tweaks from Governor Ueda.
It’s a big week for Cable (GBP/USD) as both the Federal Reserve and the Bank of England are set to make crucial rate decisions.
The FTSE 100 rose over 2% on Thursday as the ECB announced no more rate hikes for now.
ECB hikes another 25bps in September but signals that this may be the last one.
US CPI rose 0.6% in August in line with analyst estimates. Markets were anticipating a yearly change of 3.6%, but the actual figure has come in higher at 3.7%
Oil prices are on the rise once again. US crude managed to break above a key resistance back in late August and has been steadily making its way towards the $90 mark, with Brent crude trading above $92 per barrel for the first time since November.