Good Morning Traders! This Thursday we get the BoE Bank Rate.
Here is what to expect.
Sentiment
On Wednesday, Federal Reserve Chair Jerome Powell made it apparent that the bank is nearly finished raising interest rates, but his colleagues made the point that really stuck: borrowing costs must stay higher for longer despite the economy's recent recovery.
Bond traders are preparing for Treasury yields to continue rising as a result of the Federal Reserve's indication that interest rates will likely remain high far into the following year.
Chief Cabinet Secretary Hirokazu Matsuno declares at a routine news conference on Thursday that the Japanese government won't rule out any alternatives against excessive foreign exchange moves. Early next week, Prime Minister Fumio Kishida is expected to lay out the promised economic measures. This comes as surveys suggest voters are unsatisfied with the actions he has taken so far to ease the agony of rising costs, which are in part driven by yen weakening.
Overshadowing indications of a tighter physical crude market, oil slumped as the Federal Reserve said that at least one other interest rate hike may be possible this year in its battle against stubborn inflation.
Just 10 days before a funding gap, House Speaker Kevin McCarthy was able to approve a short-term budget package with the help of a few hardliners on Wednesday night, but the likelihood of a US government shutdown remains strong.
Docket
03:30 AM ET
Swiss Interest Rate Decision
Median Forecast 2%| Prior 1.75% | Range 2.0%/1.75%
07:00 AM ET
BoE Bank Rate
Median Forecast 5.5% | Prior 5.25% | Range 5.5%/5.25%
Speakers
06:45 AM ET
ECB's Lane Speaks
Good Luck Today Traders!
