Daily Market Report 10/07/15

GBP
As widely expected the Bank of England (BoE) kept interest rates at a record low, as its policymakers grappled with how to balance improving wage growth in Britain against more ominous signals from the global economy.

The BoE's Monetary Policy Committee left its Bank Rate at 0.5 percent, where it has been since the depths of the financial crisis more than six years ago, and made no statement.

The outlook for BoE interest rates hinges to a large extent on how rapidly British wage growth picks up, which was a key focus of a government budget presented by Chancellor George Osborne on Wednesday.

Martin Weale suggested he would soon vote to increase interest rates -- as he did through the second half of 2014 -- because of the swift improvement in wages. These grew at their fastest pace in nearly four years in the three months to April.

BoE Governor Mark Carney said last week Greece's debt crisis was the biggest looming threat to financial stability in Britain, while a slowdown in No.2 economy China also threatens to derail global economic growth.

USD
The Dollar lost ground yesterday after more Americans than forecast filed for unemployment benefits last week, representing a pause in the pace of labour-market improvement.

Applications for benefits have been below 300,000 for 18 straight weeks, the longest stretch since 2000 and indicating companies are content about their staffing levels. Stronger demand would probably help persuade employers to boost hiring and assure employers about the U.S. outlook in the face of weaker economies abroad.

 Key Announcements

17:30 - USD - Fed Chair Yellen Speaks