investingLive European markets wrap: BOE keeps bank rate on hold in tight vote decision | investingLive
Headlines:
Markets:
- EUR and JPY lead, NZD lags on the day
- European equities lower; S&P 500 futures up 0.1%
- US 10-year yields down 1.9 bps to 4.137%
- Gold up 0.6% to $4,008.34
- WTI crude oil up 0.7% to $60.03
- Bitcoin down 1.1% to $102,572
The main event on the session was the BOE policy decision and the central bank held the bank rate steady at 4.00% as expected, though the voting margin was as tight as it could be in siding with a decision to hold. The bank rate vote was 5-4 in favour of keeping rates steady, with dissents coming from Breeden, Ramsden, Dhingra, and Taylor in wanting a 25 bps rate cut.
GBP/USD fell slightly from 1.3090 to 1.3060 after the decision but there wasn’t anything overly dovish, with the pair now clawing back losses to 1.3085 currently as Bailey speaks.
Besides that, there wasn’t too much in it during the session. US Challenger job cuts continue to reflect heavy layoffs for the year, reaffirming a softening labour market picture. That’s not seeing much of a market reaction though as the risk mood keeps a bit more steadier after the rebound in Wall Street yesterday.
US futures are a little higher while Treasury yields are not following up on the break higher yesterday, with 10-year yields down 1.9 bps to 4.137% for now.
That’s keeping broader markets in check with the dollar holding slightly lower at the margin today. EUR/USD is up 0.3% to 1.1525 with USD/JPY down 0.3% to 153.60 at the moment. Meanwhile, gold is seeing dip buyers start to show some appetite again in a push back above $4,000 and breaking back above key near-term levels here.