British Pound Plunges on BOE Governor’s Aggressive Rate Cut Hints

Hello traders, welcome on Thursday as we edge closer to tomorrow’s highly anticipated Nonfarm Payrolls. Yesterday, we received the ADP Nonfarm Employment Change, which exceeded expectations, coming in at 143,000. Today’s calendar brings us inflation data from Switzerland, expected at -0.1%, alongside key figures from the U.S., such as unemployment claims and ISM Services PMIs.

On the charts, indices are experiencing a continued correction, particularly in Europe, where markets remain weaker compared to the U.S. Commodities are mixed: oil prices remain elevated due to ongoing tensions in the Middle East, while metals are largely trading sideways with no significant movements for the time being.

On the currency front, we’re seeing a significant decline in the British Pound, which is tied to comments made by Bank of England Governor Andrew Bailey. As reported by The Guardian, Bailey hinted at the possibility of a more aggressive rate cut, which has sent the pound tumbling. Meanwhile, the U.S. Dollar, Swiss Franc, and Japanese Yen are showing strength today. The Swiss Franc, in particular, will be influenced by the upcoming inflation data from Switzerland.

As we get closer to tomorrow’s Nonfarm Payrolls release, expect a relatively calm day, with traders positioning themselves ahead of this key event.

Source: https://www.axiory.com/analytics/market-news/british-pound-plunges-on-boe-governor-s-aggressive