Market Comment - 5th May 2022

Posted by Stuart PritchardMay 5, 2022

Good morning,

Yesterdays interest rate decision by the FED went to prediction. They hiked their rate 0.5% to 1%. On the back of this we initially saw a quick jump in the GBP/USD rate. However that gain has been almost given back now and the Pound continues to look weak versus the Dollar.

GBP/EUR has got into a sideways channel and not really doing too much right now. However the Bank of Englands interest rate decision at lunch time could have a big impact on that. The last 2 hikes have caused the Pound to jump so it will be interesting to see if that happens today.

Analysts are predicting the BoE rate will be raised 0.25% to 1% so anything outside of that could cause real volatility.

With non farm payrolls in the States tomorrow there's plenty of scheduled news to move the markets.

Outside of that the business news continues to be headlined by the spiralling cost of living and the fact that big oil companies are raking in bumper profits on the back of the recent oil price rises. This could be on the table for some time.

As ever we look forward to keeping you in the loop and look out for our next update.

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Today’s Economic Calendar

UK: 12:00 BoE Interest Rate Decision

UK: 12:00 MPC Policy Summary

UK: 12:30 BoE Governors Speech

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