Summary:

• European benchmarks resumed downward move

• Bitcoin continue to rise on the back of yesterday’s Senate testimonies

• Bank of England is about to announce its interest rate decision at noon

After brief recovery US and European equities came under pressure once again. GBP strengthens ahead of the BoE meeting and inflation report being the strongest currency amid G10 basket while JPY is the weakest one. Gold prices dip as the USD strengthens.

Bitcoin continued climbing over the past several hours being propped up by testimonies delivered by heads of the CFTC and the SEC on Tuesday. A technical analysis suggests that the most famous virtual coin has slipped into an ascending channel and a sequence of higher highs and lows appears to confirm rising power of bulls.

After solid gains posted by the European benchmarks yesterday region’s stock markets opened lower on Thursday. UK is preparing for an instant break from some of the key EU regulations after the two-year transition phase is over. These may include regulations that are limiting the UK financial services industry.

The RBNZ meeting was by far the most important and the most awaited event during the past Asian session. Even as the Bank left rates unchanged as broadly expected, the NZ currency lost ground in the aftermath. The statement was more or less in line with that presented in November last year, albeit there were a bit more dovish remarks on the exchange rate.

Looking at Thursday’s calendar we have few readings but quite important ones. The BoE will steal the show at noon providing its interest rate decision and the quarterly inflation report. Later on, Canadian housing market figures will take the spotlight followed by the weekly report on the US jobless claims.