Daily Alert – Thursday 9th May 2024: Bank of England feeling pretty dovish

Mark NugentDaily Alert, May 2024

Daily Alert – Thursday 9th May 2024: Bank of England feeling pretty dovish

Good afternoon.

The Bank of England kept the interest rate unchanged at 5.25%, as expected. However, there was distinct dovishness. The vote was expected to change from the last meeting’s 0-1-8 (up-down-no change) to a more hawkish 0-0-9 but what we got was 0-2-7. Two voters wanted to cut the rate at this meeting.

Then, at the press conference, Governor Bailey said that the bank may need to cut more than markets have currently priced in. So, all-in-all, quite dovish. As you might expect, the GBP fell.

My USDJPY trade is doing quite nicely, almost 1.5x risk in the money. No sign of the Bank of Japan turning up to ruin my parade, but it could happen at any moment.

I will be back tomorrow with your Performance Report for April.

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