The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
This saw an initial surge in the pound as the high frequency trading algos sought to purge the market of all who were short, but the pound pulled back to close the session up 1.5%. This initially hit equity markets, but the statement made it clear that “most members of the Committee expect monetary policy to be loosened in August” and the prospect of future easing salved equities and most markets subsequently rallied strongly higher. It appears that the BOE is waiting for a better gauge on the impact of Brexit on the economy to calibrate their measures appropriately. The August meeting also times with the release of their Inflation Report round.