USD Remains Gloomy, Pound to Be Shaken by BOE Interest Rate Decision!
The king of currencies failed to gain traction as risky market sentiment gave an advantage to other safe-haven currencies including the Yen in addition to gold assets that peaked to create new price heights in history.
Market sentiment remains risky with a focus on the issue of tariffs and other developments regarding policies in the administration of President Donald Trump.
Among them is pressure on Iranian oil exports by Trump with the excuse of stopping Tehran from obtaining nuclear weapons.
In addition, it also caused dissatisfaction among many parties when Trump, at a meeting with Israeli Prime Minister Benjamin Netanyahu, presented a plan to take over Gaza and 'expel' 2 million Palestinians to be resettled in countries in the Middle East.
Several countries expressed objections to the plan including Saudi Arabia, Spain, France and Indonesia.
Further developments on the following issues will continue to be monitored by investors to assess the impact on the current change in market sentiment.
In the New York session yesterday, the ADP data report measuring private employment in the United States (US) was observed with the reading for January published with a higher figure than expected and the previous month.
This is a good sign ahead of the NFP employment report on Friday after the JOLTS data report on Tuesday was gloomy.
This was followed by the US ISM services PMI data for January which slightly decreased to 52.8 points compared to 54.1 previously.
Although the readings differed from the better manufacturing sector survey on Monday, both sectors still remained well above the 50 point mark.
Market focus today (Thursday) will be on the outcome of the Bank of England meeting at 8 pm local time.
The Bank of England (BOE) is expected to cut interest rates by 25 basis points to 4.50%, with the vote of MPC members being watched.
The dovish signal in the tone conveyed by the governor in the follow-up statement could have a depreciation effect on the Pound.
