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Forex: Interest rates in focus

A big week for markets on both sides of the Atlantic with the Bank of England’s all important day on Thursday where we see for the first time a hat trick of data in the form of the Inflation Report, the interest rate decision and at the same time the minutes and voting results, whilst on Friday the US nonfarm payroll is the penultimate release ahead of next month’s FOMC meeting where many see the Fed hiking interest rates for the first time in over nine years. In the past it was normal for the BOE to release minutes from its interest rate decisions two weeks after the event, but going forward they are to be released on the same day, along with the quarterly Inflation Report, so rather than having all these market moving events scattered across the economic calendar, this Thursday they are all coming in one go. Little wonder it’s being dubbed as “Super Thursday”. Ahead of then we get PMI surveys which could influence sterling in the run up to the BOE with the manufacturing PMI release this morning.

It’s also a busy day in the US as we warm up for Friday with personal income and spending data ahead of their own manufacturing surveys. The dollar has held its ground but Treasury yields suggest we need to see two spectacular nonfarm payrolls figures for September to mark the commencement of monetary tightening.

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