BoE Hearings: Impact on UK Rate Expectations
Markets are steady ahead of key U.S. employment data and ISM services PMI, with traders looking for clues on the Federal Reserve’s next steps. The Bank of England’s monetary policy report hearings may also provide insight into UK rate expectations. In commodities, gold and silver are holding gains, while oil prices remain under pressure. The dollar is mixed, with the euro and pound gaining, while the yen and Swiss franc strengthen.
Key Data Out Today
- ADP Employment Change (Feb) – Forecast: 140K jobs added, down from 183K. A lower reading could fuel expectations of a softer labor market.
- BoE Monetary Policy Report Hearings – The Bank of England will outline its latest views on inflation and interest rates, which could influence GBP movements.
- ISM Services PMI (Feb) – Expected at 52.6, reflecting continued growth in the U.S. services sector.
Commodities
Oil: Prices are lower, with WTI crude at $67.75 (-0.75%) and Brent at $70.74 (-0.42%), as demand concerns persist.
Gold & Silver: Gold is trading at $2,918/oz (+0.14%), while silver is at $32.32/oz (+1.26%), benefiting from a weaker U.S. dollar.
Currency Movements
EUR/USD (1.0698, ↑ 0.68%)
The euro is extending gains, supported by dollar weakness and improving risk appetite.
GBP/USD (1.2841, ↑ 0.37%)
The pound is rising ahead of the BoE hearings, with traders anticipating insights into future UK rate policy.
AUD/USD (0.6285, ↑ 0.21%)
The Australian dollar is showing resilience, although commodity price weakness is limiting upside momentum.
NZD/USD (0.5681, ↑ 1.06%)
The kiwi is leading gains among major currencies, benefiting from broad-based dollar weakness.
USD/JPY (149.22, ↓ 0.37%)
The yen is strengthening, with risk-off sentiment supporting safe-haven flows.
USD/CNY (7.2586, ↑ 0.07%)
The yuan is holding steady as Chinese economic outlook concerns persist.
USD/CHF (0.8866, ↓ 0.34%)
The Swiss franc is gaining as investors turn cautious ahead of U.S. labor data.
USD/CAD (1.4387, ↓ 0.06%)
The loonie remains stable, with oil prices providing little directional bias.
USD/MXN (20.51, ↓ 0.43%)
The Mexican peso is firming as global risk appetite stabilizes.
USD/INR (87.02, ↓ 0.22%)
The Indian rupee is edging higher, tracking broader dollar weakness.
Market Outlook
Traders will focus on U.S. employment data and services PMI, which could offer direction for Federal Reserve expectations. A strong labor report may reinforce rate hike speculation, while softer data could support a more patient Fed approach. The BoE hearings will be closely watched for any signals on the UK’s inflation outlook. Meanwhile, commodities remain subdued, and currencies are responding to shifting rate expectations.