- The Bank of England and Bank of Japan are expected to hold interest rates steady despite the U.S. Federal Reserve’s recent rate cut.
- HSBC and UBS highlight the risks ahead, including the potential stalling of the British pound’s rise against the U.S. dollar and increased market turbulence if the BoJ were to raise rates shortly after the Fed’s cut.
Both the Bank of England (BoE) and Bank of Japan (BoJ) are not expected to cut interest rates at their respective meetings today and tomorrow.
The US Federal Reserve just chose to cut its own rate by 50 basis points. So, how might the BoE and BoJ decisions be affected?
Could we see more downside in gold if a 25-basis-point eventuates from the Fed? $2,530 could be a potential level of support in this scenario.
Technical indicators, including the Relative Strength Index (RSI), have eased from near-overbought levels but perhaps not enough to suggest a more significant decline in gold prices is imminent.
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