It was Super Thursday yesterday as the Bank of England announced their latest rate decision and released the Central Bank's inflation report. The BoE announced that the benchmark rate was to remain on hold at record lows of 0.25%, whilst bond buying stayed constant at 435B. The main driver of the Pound however, was the Inflation report which sent Sterling tumbling yesterday afternoon. The Pound has hit a session low, despite the Central Bank upgrading forecasts, as the BoE appear to be maintaining its flexibility on rate cuts.
In politics, President Trump continued to make an impact as he clashed with Australian Prime Minister Malcolm Turnbull over a refugee deal. Trump also made remarks about Mexico yesterday. The Associated Press reported that Trump has told Mexico’s President that he is ready to send US troops to Mexico to stop the “bad hombres down there”. Mexico have denied that these remarks are threatening. The Dollar remains volatile and fragile as Trump’s unpredictability continues.
UK Services PMI will be looked to as a gauge in how well the economy is performing, as it amounts to around 80% of the GDP figure. Expected to decline slightly to 55.8, last month’s reading exceeded economists’ forecasts.
Across the pond, the US release a raft of high tier labour market data, with the important Non-Farm figures and Unemployment Rate hitting the wires. The NFP is expected to show a jobs gain of around 170k, whilst unemployment is set to remain at 4.7%.