The main focus yesterday was the Bank of England’s meeting which saw three MPC members vote for rate rises, with the other five members however voting to keep the rate on hold. This hawkish vote, which was against expectations, spurred Sterling to rally, gaining against most of its major peers. The belief is that the three dissenters; McCafferty, Saunders and Forbes are concerned that the increasing inflation gauge will continue to push past 3% by autumn.
The US media reported yesterday, President Donald Trump is under investigation by special counsel Robert Mueller for a possible obstruction of justice. The investigation, originally focusing on Russia’s involvement in the 2016 election, has been reported to have expanded the scope to examine Trump’s conduct.
The report mentioned senior intelligence officials will be interviewed on whether Trump asked the FBI to reduce their focus on National Security Adviser, Michael Flynn and about the firing of ex FBI director, James Comey. Trump took to twitter to call the report a ‘phony story’ and continues to describe this as ‘the single greatest witch hunt in America political history.’
Today will be a quiet end to the week with little economic data being released. The week will end with FOMC member, Robert Kaplan, speaking at the Rotary Club of Park Cities in Dallas. Also from the States, we have the Residential Building Permits forecast to tick higher to 1.25M. Meanwhile, the Eurozone release a key indicator of inflation, with CPI expected to remain sticky at 1.4%.