BoE remains on hold with a 6-3 vote count

1. BoE kept it’s interest rate unchanged at +0.50% yesterday as it was widely expected.
2. The accompanying statement provided comments regarding inflation, the GDP, household spending and the Banks QE program.
3. In general, it could be characterized as neutral to hawkish.
4. The surprise element of the decision was that one MPC member switched sides in favor for a rate hike and the vote count was 6-3, underscoring a hawkish element of the decision.
5. Overall the decision provided a strong support for the pound as anticipations for an August rate hike increased and we could see the pound riding that wave for a few days.

USD weakens against major rivals

1. USD weakened against a number of other currencies yesterday and during today’s Asian morning.
2. Analysts, cite the drop of the Philly Fed Business index yesterday, as the main reason for the USD slipping.
3. The weak Philly index was cited as a reinforcement of fears that trade wars would hurt the US economic outlook.
4. Also the drop could have contributed to the slight weakening of the US 10 year treasury yields adding further pressure to the USD.
5. Should the yields continue to drop we could see USD continuing to slip for the next few days.

IronFX Daily Report ‘June 22nd’