GBP
The Bank of England, once widely expected to start weaning Britain off
near-zero interest rates this month, now looks set to signal no rise in
interest rates until the middle of next year. The BoE kept rates at 0.5
percent, their level since the depths of the financial crisis in 2009. 

More attention will be paid to economic projections the Bank is due to publish
on Nov. 12. It is likely to  will reflect gathering clouds over

GBP
The Bank of England, once widely expected to start weaning Britain off
near-zero interest rates this month, now looks set to signal no rise in
interest rates until the middle of next year. The BoE kept rates at 0.5
percent, their level since the depths of the financial crisis in 2009. 

More attention will be paid to economic projections the Bank is due to publish
on Nov. 12. It is likely to  will reflect gathering clouds over
Britain’s fast-recovering economy since the BoE made its last quarterly
forecasts in August. A combination of weak inflation that could fall below 1
percent soon, slow wage growth and the risk of a return to recession in the
euro zone. these headwinds  have already prompted some of the
Bank’s top officials to say they are not ready to start returning to more
normal monetary policy. 

EUR
The Euro struggled during yesterday’s session after the European Central Bank
decided to keep interest rates at record lows and indicated they are ready to
take more policy action if needed to revive their struggling economy. 

The ECB chief said risks to the euro zone’s recovery remained skewed to the
downside and ECB and national central banks’ staff had been tasked with
“ensuring the timely preparation of further measures to be implemented if
needed”, causing the euro to hit a 26-month low across a basket of
currencies. 

USD
There were fewer Americans filing applications for unemployment benefits
last week, first-time jobless claims dropped 10,000 to a three-week low of
278,000 in the week ended November 1st. Cutbacks in dismissals and increased
hiring are sustaining household purchases, which account for 70 percent of the
world’s largest economy. 

Productivity rose more than projected in the third quarter, helping to contain
labour costs even as employment picks up. The US Labour Department’s
measurement of employee output per hour also increased 2 percent year on year.
As a result the U.S dollar strengthened during yesterdays
session.  

Key Announcements:
13:30 USD: Non-Farm Employment Change (Oct) expected to be lower at 
231K from 248K
13:30 USD: Unemployment Rate expected to remain unchanged at 5.9%
13:30 USD: US Fed Chair Janet Yellen makes a speech

Our dealers are available via e-mail ([email protected]) or by phone (020 7220 8181).