Other economic highlights for today (8/3/2018)

In the European session we get UK’s Services PMI for July and Euro-zone’s retail sales growth rate for June.

In the American session we get Canada’s Trade Balance figure fir June and form the US the Trade Balance figure for June, the ISM Non-Manufacturing PMI for July and the Baker Hughes oil rig count figure.

BoE hikes, but pound drops on dovish comments

BoE hiked rates as expected yesterday reaching the +0.75% level, in a surprise unanimous 9-0 vote. The hike temporarily strengthened the pound and especially the 9-0 vote count, as it showed the bank’s decisiveness for the rate hike. However, in the press conference later, dovish comments made by BoE governor Carney weakened the sterling substantially. The comments included remarks such as that the monetary policy would need to walk not run and the repercussions of a hard Brexit. The pound may continue to ride a bearish wave today, at the aftermath of the comments made and as the Services PMI for July is forecasted to drop to 54.7 compared to previous reading of 55.1.

Cable dropped yesterday breaking consecutively the 1.3090 and the 1.3035 support lines and stabilized later on. We could see the pair continue to trade in a bearish market as the USD side of the pair could be supported by the release of the US employment report. Should the bears continue to rule the pair’s direction we could see it aiming if not breaking the 1.2960 support line. Should the bulls be in the driver’s seat we could see the pair breaking the 1.3035 resistance line and aim the 1.3090 resistance hurdle.

Other economic highlights for today (8/1/2018)

In the European session we get UK’s Nationwide HPI rate as well as the Markit/CIPS manufacturing PMI figure, both for July, while from the Euro-zone we get the final release of the Markit manufacturing PMI for July.

In the American session we get from the US the ADP National Employment figure and the ISM manufacturing PMI, both for July, while later on the EIA weekly crude oil inventories figure is to be released.