BoE Minutes

After two turbulent days is the market giving any idea as to where it is heading?

The Fed are depserate to prevent a recssion. Yesterday they cut the rates by 75bp and on March 17th we suggested a rate cut of perhaps 1% might help them. So they didnt cut by 1% but they did bring a serious offer to the table. Only thing is the recession has already started and no one wants to admit it.

The BoE minutes will be highly anticipated.

Ok, so we dont know where the market is heading but it seems like business as usual. The Dollar is falling on speculation that the housing slump is going to increase credit market losses.

It seems highly likely the UK will be cutting interest rates in the future irrespective of BoE minutes today which shows forecasts 8-1 vote to keep the 5.25% rate.

Just remember when the governing bodies admit we are in a recession you will already know it.

Good trading.

Forex Analysts
Javid Shaik & Anne Chapman