Decision day

Today's news headlines: 

‘Russia Criticizes U.S. Over New Troops to Europe: Ukraine Update’.  Kremlin officials decried both the sending of US troops to NATO’s eastern flank and the presence of NATO troops near Russian borders—despite its buildup of over 100,000 troops near its Ukrainian border. Meanwhile, US President Joe Biden and French President Emmanuel Macron held crisis talks with both affirming their support of Ukraine’s sovereignty and preparations to impose economic sanctions if Russia decides to invade. Elsewhere, German Chancellor Olaf Scholz—who’s due to visit Washington on Monday—said he’ll meet with Russian President Vladimir Putin soon in Moscow for further talks on the matter. (Bloomberg)

‘BOE Set for Historic Rate Hike to Curb Inflation’. Today, the Bank of England is expected to deliver its first back-to-back rate hike since 2004 while taking steps to address its stockpile of bond holdings. Governor Andrew Bailey has been quiet in the lead up to the Monetary Policy Committee meeting, which has caused investors to speculate that he may surprise with either a hawkish tilt to combat inflation or even a dovish tilt with the UK facing an imminent cost of living crisis. Markets are pricing in rates at 1.50% by the end of the year, however, economists have put estimates closer to 0.75%. (Bloomberg)


Today

Overnight, US equity futures fell after poor earnings figures from technology giants Meta and Spotify. Markets will likely take on a quieter tone ahead of the Bank of England and European Central Bank meetings later.

Events

Bank of England Monetary Policy Summary and Report: 12:00PM
Monetary Policy Committee Official Bank Rate and Votes: 12:00PM
BoE Asset Purchase Facility and Votes: 12:00PM
BoE Governor Andrew Bailey speaks: 12:30PM
European Central Bank Monetary Policy Statement: 12:45PM
ECB Main Refinancing Rate: 12:45PM
ECB press conference: 1:30PM
US Weekly Jobless Claims: 1:30PM
US ISM Services Purchasing Managers’ Index: 3:00PM


Interbank rates:

GBP/USD – 1.3555
GBP/EUR – 1.2000
EUR/USD – 1.1300
USD/CAD – 1.2705

The markets are moving. To speak to our team, please call +44 (0)20 3465 8200.