20/09/16 - BoE Hints At Further Easing

USD

The Dollar fell yesterday, mainly due to a stronger oil price while the market awaits the central bank policy meetings in Japan and the United States. The Japanese yen gained against the Dollar and the Euro, helped along by expectations that any policy announcement by the Bank of Japan this week is unlikely to be drastic enough to weaken its currency. Investors have largely ruled out a Federal Reserve hike in September, although there is continued speculation that officials will start the ball rolling for a December move.
 

GBP

Hints from the BoE of additional easing in 2016 has weighed in further on the British pound to Euro rate. The dovish outlook has been putting a lot of pressure on Sterling, particularly as uncertainty is likely to put downside pressure on the domestic economy over the coming months.

According to data from Rightmove, UK house prices are rebounding, following a slowdown that immediately followed the Referendum. Prices have increased 0.7 %month-on-month, after falling 0.9 % in the weeks after the Brexit vote.

Prime Minister Theresa May is visiting the U.S. for two days this week to attend the United Nations General Assembly. She is expected to attempt to reassure business leaders that Brexit should not be a reason to pull investment from the U.K. She will be meeting with some of the US's most powerful business leaders, during a time of concern that they could be preparing to move their European headquarters out of the UK.

 

Key Announcements

13:30 – USD - Building permits, expected to be 1.17 million