Market Update – 13th May 2016 – Bank of England Keeps Rates On Hold, U.S Retail Sales Due Tonight

  

Not surprisingly the U.K’s Bank of England (BOE) decided to leave rates unchanged at 0.5% marking just over 7 years of rates at half a percent. In the period since the GFC the U.K has struggled to maintain growth and inflation for longer than a few months at a time and in the latest monetry policy minutes the BOE noted that GDP is expected to decrease further in the months ahead. The U.K EU membership referendum on June 23rd next month is the event of the month and likely to result in massive volatility for GBP crosses including AUD/GBP which is now at 3 month lows.

Another big session of trade tonight with U.S retail sales PPI due around 10.30pm. Economists expect a boost in retail sales figures and producer prices. It’ll be a wild ride for the Greenback and AUD/USD which currently sits just above 0.7300.

Have a fantastic weekend!

DATA RELEASES TODAY:

USD – Retail Sales and PPI at 10.30pm

USD – Prelim UoM Consumer Sentiment at midnight

CNY – Industrial Production at 3.30pm tomorrow afternoon

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