The Bank of England cut rates by 25 basis points, as expected, allowing the GBP to slip back to 1.2400. The British economy has been in dire straits for some time now and the need for monetary stimulus, is apparent. This may open the door for further rate cuts, as 4.5% remains a very elevated level, in terms of other Western Central Banks. Attention now turns to the US Non-Farm Payroll number, set to be released tonight. The markets are expecting no surprises, and the lead-in employment reports have been mixed. This may impact the Fed’s next rate decision, if it is a complete shocker, but this is not expected. The storm that is Trump, has been quiet for a day or so, so markets can expect some action over the next few days. The GBP fell back below 1.2400 following the IRD, but steadily recovered, while the EUR slipped below 1.0400.The slightly stronger reserve allowed commodity currencies to drift lower, with the AUD falling back to 0.6260, while the NZD dropped to 0.5650. Attention returns to the Fed and the Non-Farm Payroll number, which may impact the next IRD. Economic data and Central Bank speculation, have taken a back seat to the US instigated tariff/trade wars, popping around the globe.
