Today, all eyes will be on the BOE interest rate decision, alongside the release of the Monetary Policy Committee meeting minutes and the quarterly Monetary Policy Report. The market participants expect the central bank to keep its interest rate unchanged near zero. Meanwhile, on January, the BOE Governor Andrew Bailey said it was too soon to consider cutting interest rates, even if it were an option worth considering over coming months
Wall Street ended higher on Wednesday supported by better-than-expected US economic data and robust Q4 earnings results.
On the US earnings front, Clorox (NYSE: CLX) and Merck & Co (NYSE: MRK) reporting earnings today before the bell while Pinterest (NYSE: PINS), Snap (NYSE: SNAP), Ford (NYSE: F) and Gilead Sciences (NASDAQ: GILD) is scheduled to report results after the market close.
Crude oil price trading steady. On Wednesday, the oil prices received additional support after the EIA report revealed a decline in crude stockpiles in the US by 994k barrels to 475.7 million barrels during the past week. Earlier this week, the API data showed the U.S. crude oil inventories fell by 4.3 million barrels in the week to Jan. 29.
In the currency market, the US dollar index rose to its highest level in more than nine weeks on Thursday while the EURUSD fell below 1.20 during the European session, its lowest level in 2021. On the other hand, the British pound trading lower ahead of the Bank of England interest rate decision.
The gold price hits fresh weekly low on Thursday, the past 4 trading sessions have been a tough time for gold buyers.
On the data front, the US released the ADP employment report. The data showed the private sector added 174,000 jobs in January, against the expected 48K. The ISM Services numbers also came in higher, at 58.7, compared to the forecast of 56.7.
On the stimulus front, US President Joe Biden on Wednesday said he expects "some" Republican support for his huge new Covid-19 economic relief package.
Moving ahead today, the important events to watch:
UK – BOE interest rate decision and statement: GMT – 12.00
US – Jobless claims: GMT – 13.30
US – Factory orders: GMT – 15.00
Worldwide, the number of COVID-19 cases reported is more than 104.1 million. The United States has confirmed over 26.4 million cases and has had more than 448,000 deaths from COVID-19, the highest totals in the world.
EUR/USD: The currency pair continuously trading weaker on Wednesday. At the time of writing, Euro trading below the psychological support area 1.20.
The important levels to watch for today: Support- 1.1980 and 1.1940 Resistance- 1.2040 and 1.2080.
GOLD: The precious metal slightly rebounded from the key support area $1814. At the time of writing, the safe-haven trading above $1818.
The important levels to watch for today: Support- 1815 and 1806 Resistance- 1830 and 1836.
Quote of the day: The fundamental law of investing is the uncertainty of the future- Peter Bernstein.
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