Summary:
- European stock markets have been subdued so far, the FTSE100 (UK100 on xStation5) is slightly higher ahead of the BoE verdict
- USD along with GBP in a light retreat ahead of key reports scheduled for today
- Bitcoin (BTCUSD) smashes $7000 following CME and Amazon stories
Volatility across currencies, stocks, bonds and commodities has been muted so far as investors are impatiently awaiting key reports which could affect all of the mentioned assets. Beginning with the stock market one may notice that the European indices have been barely changed as of yet, the UK100 has increased 0.3% though. Currencies have held their earlier performance as the Antipodean currencies are constantly the strongest ones, however the euro and the Swiss franc are following.
While everybody is awaiting the BoE decision we got quite a decent reading when it comes to construction PMI which managed to beat the forecast. However, the devil is in the details and the overall landscape isn’t so rosy when we take a closer look into the Markit report. As a result, the GBP is losing 0.15% against the US dollar in less than an hour before the BoE decision. The greenback is on the back foot as well as we’re gearing up for two breathtaking reports regarding the new FED chair as well as a US tax bill. We offered more details on those two topics in our morning post.
Bitcoin has gone nuts once again as the price has already stormed an astounding $7000 following an announcement from the CME (Chicago Mercantile Exchange), the world’s largest options and futures exchange. The company released a report on Tuesday that it would launch trading in Bitcoin futures by the end of the year. Moreover, Amazon has secured of late three new domains related to cryptocurrencies sparking speculations that the e-commerce giant could be preparing a move into the cryptocurrency space.
Thursday is the day of reckoning for the British pound as the BoE is expected to lift interest rates by 25 bps even as some economists, policymakers warn it would be a risky move give the state of play of the economy. Additionally, there will be announcements as for the new FED chair and a US tax bill which could make the GBPUSD one of the most volatile pair today. The full tally for today is available under this link.