We await today at 2:00 pm the interest decision from the Bank of England and no change in interest rate is expected today and expectations are steady by 5.25%, the highest level in more than 15 years. He paused at his last meeting in September, stopping after 14 consecutive highs.
And if investors feel the Bank of England will allow inflation to rise due to a lack of choice, sterling could take a hit today.
On the flip side, 10-year U.S. Treasury yields fell about 20 basis points and the dollar fell as a result, keeping things interesting ahead of tomorrow's U.S. jobs report.
Especially after the decision to stabilize interest yesterday as expected, as the Fed kept rates unchanged at this week's meeting, Chairman Jerome Powell noted the recent rise in the U.S. yield curve that helped tighten U.S. finances. Powell reiterated that the Fed is walking cautiously but is not confident inflation is on track for a 2% target.
In short, the Fed's recent decision was not pessimistic, but unsurprisingly hard-line.
