Markets hesitant as we await the Bank of England
The greenback is up this morning across the board (albeit with little conviction) as we await the Bank of England’s key rate decision tomorrow. Although no doubt appears to remain on markets as to whether we will see a rate cut, all scenarios are on the table regarding future decisions. The pound sterling, which has been under pressure since Brexit became a reality, could rally considerably if comments by BoE Governor Mark Carney reassure investors.
In the meantime, we will need to get through today’s session, which kicks off with crude oil once more below $40 a barrel, European stocks in the red again and North American indexes likely headed for a third straight day of losses.
It remains to be seen whether the release at 10:30 of U.S. crude oil inventory levels will add to the commodity’s woes or serve as a pretext for a rally. Also on deck south of the border this morning, ADP Employment Change numbers for June will be announced at 8:15. Stéphane
