Stock markets edged lower in the Asian session as investors looked towards a slew of earnings releases.
The Bank of England’s monetary policy meeting is expected to establish whether the BoE will adopt negative interest rates
Bullish RSI divergence points to EUR/GBP ’s recent slide running out of steam.
Asian Session Recap
Stock markets edged lower in the Asian session as investors turned their attention to a slew of earnings releases.
In FX markets, the Australian, New Zealand and US Dollars largely outperformed, while the British Pound fell ahead of the BoE monetary policy decision.
Looking ahead, the BoE interest rate decision and US jobless claims data will be in focus.
BoE Dismisses Negative Rates Underpinning GBP
The Bank of England’s monetary policy meeting is expected to set out the central bank’s view on negative interest rates following a consultation into the use of negative rates.
Even if the BoE embraces negative rates as a tool this does not necessarily mean that they will cut rates into negative territory imminently. Indeed, Governor Andrew Bailey has distanced himself from negative rate talk in recent comments.