Markets Await BoE Interest Rates & US GDP Data as Yen Weakens
Thursday begins with markets closely watching the Bank of England’s interest rate decision and final Q3 US GDP figures. The Bank of Japan maintained its rate at 0.25% earlier, in line with expectations. Energy prices and precious metals show mixed trends, while currency markets adjust cautiously ahead of key announcements.
Key Data Out Today
- BoJ Interest Rate Decision: Held steady at 0.25%, aligning with expectations.
- Germany GfK Consumer Confidence (Jan): Improved slightly to -21.3, but remains deep in negative territory.
- BoE Interest Rate Decision: Scheduled for 1:00 PM, expected to remain at 4.75%.
- US GDP Growth Rate (Q3, Final): Forecast at 3%, markets are watching for potential revisions.
Energy & Precious Metals
- Crude Oil: WTI fell to $69.56 (-0.66%), and Brent declined to $72.94 (-0.61%) as concerns over demand persist.
- Natural Gas: Climbed 2.45% to $3.45/MMBtu, boosted by short-term weather-driven demand.
- Gold: Rose 1.09% to $2616.31/oz, as investors seek safety ahead of major data releases.
- Silver: Increased 0.98% to $29.60/oz, tracking gold’s upward trend.
Currency Movements
EUR/USD
- EUR/USD: Gained 0.45% to 1.0400, supported by slightly stronger German consumer confidence data.
GBP/USD
- GBP/USD: Up 0.23% to 1.2603, as markets await the BoE decision.
AUD/USD
- AUD/USD: Rose 0.32% to 0.6237, reflecting modest commodity-linked currency support.
NZD/USD
- NZD/USD: Fell 1.36% to 0.5641, under pressure from weak domestic sentiment and USD strength.
USD/JPY
- USD/JPY: Increased 1.15% to 156.47, as the yen weakened following the BoJ rate hold.
USD/CNY
- USD/CNY: Down 0.22% to 7.3088, as the yuan steadies on mixed economic sentiment.
USD/CHF
- USD/CHF: Dropped 0.28% to 0.8985, as safe-haven flows support the franc.
USD/CAD
- USD/CAD: Lower at 1.4429 (-0.12%), as subdued oil prices weigh on the Canadian dollar.
USD/MXN
- USD/MXN: Higher at 20.39 (+0.11%), reflecting slight USD strength.
USD/INR
- USD/INR: Flat at 85.05 (-0.05%), as traders await US GDP data.
Things to Keep a Watch On:
- BoE Decision (1:00 PM): Expected to stay at 4.75%; any surprises could drive GBP volatility.
- US GDP Growth (2:30 PM): Final Q3 data could shape market expectations for the Fed’s next moves.
- Energy Prices: Watch for any shifts in crude oil and natural gas driven by winter demand.
- Yen and JPY Crosses: Reaction to the BoJ’s decision could drive further currency moves.