The BOE Could Unleash Fresh Monetary Stimulus

Starting today’s report with an important quote “The Bank of England could unleash fresh monetary stimulus this summer in an effort to support the economy after Brexit.’’ Bank of England's Mark Carney said. Mr. Carney also said, “The committee will make an initial assessment on 14th July and a full assessment complete with a new forecast will follow in the August inflation report.”

On Thursday, GBP fell by more than 1% negatively affected by Mark Carney’s statements.

Euro settled at $1.11 vs. USD and could be supported by such levels during the course of the day. On the other hand, claims for U.S. unemployment benefits rose, but are still at a low level.

Gold traded above $1,320 backed by the Brexit news and global uncertainty. From a technical point of view, the yellow metal could extend its gains during the course of the day.

Oil prices declined, negatively affected by the end of the strike in Norway. U.S. crude traded below $48.50 and could settle around $48 by the end of the week.

The most important economic events:

• USD ISM Manufacturing (JUN): (GMT 16:00) Important – Forecast (51.3) – Previous (51.3)
• EUR Euro-Zone Unemployment Rate (MAY) (GMT 11:00) Important – Forecast (10.1) – Previous (10.2)

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.