{"id":20147,"date":"2019-08-01T08:01:13","date_gmt":"2019-08-01T07:01:13","guid":{"rendered":"http:\/\/starthostunlimiteddmffassi-ss.stackstaging.com\/etfworld.co.uk\/?p=20147"},"modified":"2020-05-12T10:56:21","modified_gmt":"2020-05-12T09:56:21","slug":"first-us-interest-rate-cut-since-2008","status":"publish","type":"post","link":"https:\/\/www.etfworld.com\/nl\/first-us-interest-rate-cut-since-2008\/","title":{"rendered":"First US Interest Rate Cut Since 2008"},"content":{"rendered":"

GBP:<\/strong> After four consistent days of losses the pound found some respite on Wednesday and steadied from the two-year lows….<\/span><\/p>\n

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RationalFX<\/strong><\/p>\n

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Rather than this being a result of Boris Johnson\u2019s visit to Northern Ireland, the pound actually benefited from month-end sterling demand.<\/p>\n

Trading volumes have now returned to more normal levels and as a result, volatility has eased after the initial plunge at the start of this week.<\/p>\n

However, there is unlikely to be sustained respite for the pound in the short term as the probabilities of a hard Brexit have increased since Boris Johnson took the reins of power.<\/p>\n

He and his cabinet have reiterated their commitment to leaving the European Union at the 31st October deadline, regardless if a deal is in place or not.<\/p>\n

USD<\/strong><\/p>\n

The Federal Reserve made the first cut to interest rates since 2008 on Wednesday evening, however the dollar moved to two-year highs in the immediate aftermath.<\/p>\n

This was due to the fact that Fed Chair Powell stated that the move was a one-off insurance cut and that it would not signal the beginning of a rate-cutting cycle.<\/p>\n

The 25 basis point cut was anticipated by the market, however markets were priced in for a more dovish outlook than the one that the Federal Reserve delivered. Instead, the statement upended expectations of further rate cuts.<\/p>\n

A day prior, traders had forecast a 35% chance of three cuts by the end of the year; now this has fallen to 12%.<\/p>\n

EUR<\/strong><\/p>\n

The euro suffered from yet another round of disappointing data on Wednesday as the Eurozone economy expanded by just 0.2% in the second quarter, down from the 0.4% for the first quarter.<\/p>\n

The Eurostat also estimated that core inflation dropped from 1.1% to 0.9% in July whilst the headline inflation figure fell to 1.1% from a previous 1.3%.<\/p>\n

Disappointing data like this only serves to increase the likelihood that the ECB will launch a big package of stimulus in September in order to try and revive the Eurozone economy and get the inflation number closer to the 2% target.<\/p>\n

Key Announcements <\/strong><\/p>\n

12:00 \u2013 GBP: Bank of England Interest Rate Decision; expected to remain at 0.75%<\/p>\n

12:00 \u2013 GBP: Bank of England Meeting Minutes<\/p>\n

12:30 \u2013 GBP: Bank of England Governor Carney Speech<\/p>\n

15:00 \u2013 USD: ISM Manufacturing PMI (Jul); expected to increase to 52.0 from previous 51.7<\/p>\n

Source : ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"

GBP: After four consistent days of losses the pound found some respite on Wednesday and steadied from the two-year lows….<\/p>\n","protected":false},"author":4,"featured_media":18258,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[320],"tags":[322,321,278],"class_list":["post-20147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-analysis","tag-gbp","tag-rationalfx","tag-sterling"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/20147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/comments?post=20147"}],"version-history":[{"count":6,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/20147\/revisions"}],"predecessor-version":[{"id":20150,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/posts\/20147\/revisions\/20150"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/media\/18258"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/media?parent=20147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/categories?post=20147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/nl\/wp-json\/wp\/v2\/tags?post=20147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}