The main mover on Thursday was Sterling, which fell sharply after the BoE left monetary policy unchanged at 0.25% , as widely expected, and the asset purchase target at GBP 435 bio. The interest rate decision came with the MPC voting by 6-2 to leave rates on hold, also as generally expected. The dovish forward outlook is what traders focused on though, with future projections now suggesting economic growth to be at 1.7% in 2017 and 1.6% in 2018, both revised down from prior projections of 1.9% and 1.7% respectively, while 2019 growth forecast was held unchanged at 1.8%. Elsewhere the dollar was mixed, with Yen strength returning, while the other majors were choppy but without direction. The dollar remained under some pressure after the ISM showed that its non-manufacturing index fell to 53.9 last month from 57.4 in June. Stocks and commodities were rangebound and are trading at close to previous levels.
Friday will kick off a busy session with the Australian Retail Sales (June; exp +0.2%mm) and the Monetary Policy Statement. That aside, Asia will be quiet, as will Europe with just the German Factory Orders to focus on ahead of the main game of the day, the US employment data. The NFP is slated to come in at +183K, with the headline rate dropping to 4.3%. Watch the Average Hourly Earnings, which are expected to rise by 0.3% and will be an important factor in overall makeup of the data, as will the revision of the previous month’s figures. have a good w/e.
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|ASX SPI: 5666|