Market movers today
Today's most important event is the Bank of England meeting in the UK. We expect BoE to hike the Bank Rate by 25bp to 0.50% from 0.25% in line with consensus and market pricing (rate announce at 13:00 CET, Carney's press conference at 13:30 CET). As the hike is consensus, the question is what BoE will signal about further hikes next year. Our view is that this is not the beginning of a new hiking cycle, as we think this is more about taking back the emergency cut from August 2017 just after the Brexit vote. For more see also Bank of England preview: Taking back emergency cut from 2016 , 30 October.
In the US, focus is on Trump's announcement on the next Fed chair "in the afternoon (US time)". Our base case is that Jerome Powell will be the next Fed chair (represents status quo in terms of monetary policy), but do not rule out John B. Taylor (hawkish). Also in the US, the Republicans may release its tax proposal today (likely around 14:00 CET) (unless it is postponed again due to internal disagreement).
Currency reserve data are due in Denmark.
To read the entire report Please click on the pdf File Below: