Key BoE Decision Today.

The BoE has a big decision to make today on an interest rate hike, yesterdays CPI figures sent the odds of a rate hike to around 50/50 with markets paying close attention to this important release.

GBP (British Pound): Yesterdays CPI figure has caused doubt over the interest rate decision. Yesterday morning the odds of a Hike to 5.5% were very high but due to the lower than expected numbers the chances of this hike are now up in the air. The GBP has seen a large amount of volatility in recent days and this decision will help to settle the rate one way or another.

Following this decision we will have the release of both UK retail sales along with Services and manufacturing PMI data which could cause further volatility with the currency.

EUR (Euro): The EUR continued to react off the other big releases from the GBP and USD for this week with little data releases to swing the currency itself.

Looking ahead to later this week the Euro will be heavily influenced by Fridays slate of PMI releases for the Eurozone. This will show how both the manufacturing and services sectors are performing throughout the Eurozone.

USD (United States Dollar): The Fed decided to hold interest rates yesterday evening but did not rule out any further hikes in November. Due to the mixed tone we saw a small bit of dollar weakness off the back of the announcement.

Finally, on Friday we also have PMI released for the US as well which will help to understand the overall health of the US servicing and manufacturing sectors.

Economic Calendar