BOE keeps rates unchanged. GBP keeps gains (so far)
The GBP is the strongest and the CAD is the weakest. BOEs Bailey said that the central bank was not prepared to go negative but painted a cautionary tone on the economy. The USD is trading mixed with gains vs the EUR, CAD, AUD and NZD and declines vs the GBP, JPY and CHF. Stocks are looking lower. Yields are lower and precious metals are continuing the move higher. Gold is trading to a new all time high. Silver is soaring higher on the day as well (+4.8%). US initial claims will be released at the bottom of the hour (estimate 1.4 million)..
The ranges and changes are showing the mixed results for the dollar.The EURUSD as given up his gains and trades negative. The GBPUSD remains near the high for the day. USDJPY, USDCHF, AUDUSD and NZDUSD are all within 14 pips of unchanged. JPY crosses are mostly lower with the exception of the GBPJPY.
In other markets:
- Spot gold is trading up $21.69 or 1.06% of 2059.69
- Spot silver is trading up $1.34 or 4.95% at $28.28
- WTI crude oil futures are trading down $0.27 or -0.64% $41.91
In the premarket for US stocks, the futures are implying a lower opening and the 4 day win streak for the S&P and Dow and the 6 day win streak for the NASDAQ are all in jeopardy:
- S&P index -17 points
- NASDAQ index -38.69 points
- Down -145.52 points
In the European markets the major indices are also trading to the downside after gains yesterday:
- German DAX, -0.9%
- France's CAC, -1.3%
- UK's FTSE 100, -1.9%
- Spain's Ibex, -1.6%
- Italy's FTSE MIB, -1.7%
In the US debt market, yields are lower with the yield curve flatter as well:
In the European debt market, the benchmark 10 year yields are also moving back to the downside. German yields are leading the way with a -3.8 basis point decline:
