Yesterday afternoon the Pound surged after the Bank of England failed to cut UK interest rates, despite widely-held speculation it would move to calm fears over the impact of Brexit.
The pound hit a 2 week high against the dollar after it emerged the Bank's monetary policy committee (MPC) had voted by a majority of 8-1 to maintain the bank rate at 0.5%, with only Gertjan Vlieghe voting for a cut to 0.25%.
The decision came as a shock: markets had put the chances of the MPC cutting rates at 80 per cent in the lead-up to today's decision. The Bank of England governor said that further stimulus would be required "this summer" and there is "value to making judgments as quickly as possible".
Producer Prices, the leading indicator of consumer inflation, recorded their biggest gain in a year in June as the cost of energy products and services increased, pointing to a steady build-up in inflation as the drag from a strong dollar and lower oil prices fades.
The US also had a strong jobs figure as the number of applicants for unemployment benefits last week held at the lowest level since mid-April. Companies having trouble finding qualified and skilled workers are hesitant to dismiss employees as demand shows signs of picking up after a weak start to the year.
13:00 – GBP - BOE Gov Carney Speaks
13:30 – USD – Consumer Pricing Index forecast to remain at 0.2%
13:30 – USD – Core Consumer Pricing Index forecast to remain at 0.2%
13:30 – USD – Core Retail Sales m/m forecast to remain at 0.4%
13:30 – USD – Retail sales forecast to decrease to 0.1%