There are many market moving events in the calendar today, including 2 Central Bank Rate Decisions and US Retail Sales. Bank of England is widely expected to keep the rates unchanged along with its stimulus package set at 435billion GBP. The Swiss National Bank is also expected to keep their policy unchanged at -0.75%. US Retail Sales will be closely watched in the afternoon. While US Rate expectations for September (next week) are very low, the news today will confirm whatever the decision next week will be.
Currencies: The GBP gave back some of its big gains this month versus the USD as it dropped from 1.3443 highs to 1.3138 before bouncing to 1.3242 at time of writing. However, it should be noted that economic data from UK have been rather solid so far and suggested that sentiments generally recovered after the Brexit referendum. EUR/CHF is holding steady in range of 1.08 and 1.10. SNB will likely maintain a neutral stance in the accompanying statement too and leave room for further policy actions. USDJPY fell overnight from 103.34 in the EU session to 102.30 at time of writing. Overall, there are no clear trends in the market, something which will likely stop next week, with the release of the FED decision.
Stocks: Asian stocks suffered their 6th consecutive day of losses as fears over global monetary policies rose ahead of the key meetings of Japan and the US FED next week. The Nikkei 225 fell 1.20%, the S&P/ASX 200 eased 0.22% and the Composite was down 0.68%. Overnight, US Stocks were mixed after the close on Wednesday with the DJ losing 0.18 to hit a new 1-month low, while the SP500 fell 0.06 and Nasdaq adding 0.36%.
Oil and Gold: Oil prices were hammered yesterday, with Crude falling 4% to $43.58 in response to a surprise buildup in inventories. On Tuesday, crude futures settled down 3 percent after the world’s energy watchdog and OPEC both revised forecasts that signaled the global crude glut could persist much longer than expected. Gold had a relatively calm session with prices hovering between $1321 and $1325.
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