Published: 05/08/2022 By ECAP
Yesterday saw the Bank of England raise interest rates by 50bps, from 1.25% to 1.75% as the committee voted 9-0 in favour of the hike. The pound however failed to make gains on the rate hike due to comments made by the monetary committee that the UK is being forecast to enter a recessionary period of at least 5 months starting around Q4. Comments also echoed that we may see core inflation hit in excess of 13% as soon as October, which combined with the aforementioned recessionary comments saw the pound edge lower to sit within the low 1.21's and continues to trade there this morning.Today sees the headline US data in the form of US Non-Farm payroll data, the data is expected to post a 250k jobs added from the previous months reading of 372k - any figure above the 250k will see the USD regain some of its recent lost strength, whereas any figure below the 250k will see some further USD weakness.