Markets In Tight Range In Anticipation of BoE Statement
Markets show limited movements on the eve of the last announcement of monetary policy from the Bank of England and subsequent economic forecasts and a press conference. It is expected that the bank will leave the interest rate at the current level of 0.5%. A recent series of weak economic reports and renewed concerns over Brexit have prompted investors to slash expectations for a rate hike.
Sterling remained on the defensive ahead of a Bank of England meeting, where no change to interest rates was expected. The pound gained ground, and the GBP/USD pair rising by 0.45% to 1.3608, recovering from Tuesday’s four month lows of 1.3483.
Oil prices grew significantly, after US President Donald Trump announced withdrawal from an international nuclear deal with Iran and reimposed “the highest level of economic sanctions” against the country. Some analysts have said the reinstatement of sanctions could lead to tighter global oil supplies as they make it more difficult for Iran to export oil. WTI crude oil rose by 0.8%, to $71.75 a barrel, after rising as high as $71.89 at one point, also close to highs last seen in late 2014. Brent gained 0.9%, to $77.88 a barrel.