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BoE Chief Economist Huw Pill highlighted, in an online event overnight, a shift in BoE's monetary policy discussions, which has evolved to determining "when" rather than "if" it will be appropriate to commence reductions in the Bank Rate.
The Pound Sterling (GBP) struggles to hold the recovery move in the European session on Tuesday as the near-term outlook for risk-sensitive assets is bearish.
Sterling edged higher against the U.S.
dollar on Tuesday after falling sharply a day earlier, as
investors assessed the policy path of the British and the U.S.
central banks. The pound.
Dollar had a dramatic turnaround in its fortune overnight, following the significant slide in US 10-year yield, which coincided with robust rally in US stock markets. Major indexes effectively wiped out the sharp declines seen on Wednesday. Anticipation of a Fed rate cut in March has notably dwindled, with fed fund futures now showing a mere 37.5% probability. Conversely, likelihood of a cut in May has escalated markedly, with market bets nearing 92%. Against this backdrop, today's Non-Farm payroll data looms large, poised to influence Dollar's next move, along with broader implications for risk sentiment and the outlook of treasury bonds.