Cable’s Surprising Recovery

The cable strengthened 1.4 percent in today’s trading. The Bank of England (BoE) delivers its 2nd post-Brexit interest rate decision on Thursday May 4th. Some investors speculate that policy makers will disappoint the market, which is leaning almost certainly toward a rate reduction.

Japan’s currency soared 1.5 percent to 100.89 against the US dollar as Japan’s government publicized a fiscal package that was about a ¼ of the entire spending amount identified by Prime Minister Shinzo Abe last week. The Yen hit its strongest level since July 11.

For the first time in 10 days, we saw the Bloomberg Dollar Spot Index fell for the 5th time in 6 days, dropping 0.6 percent. This index, similar to the US Dollar Index, is a measure of the USD against 10 other major currencies. The Kiwi and the Aussie increased 1 percent, rising with the Euro and the Swissy.

Chances of the Fed raising interest rates this year has decreased to just below 40% after a weaker-than-expected economic growth report in the US last Friday. This Friday’s NFP release will shed more light on the US economic situation.

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