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BOE Rate Cut Not Justified; Oil Below $40 Could Invoke OPEC Action

Published 05/08/2016, 05:39
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With the BoE rate decision ahead, and oil near the $40 level, we discuss the implications for GBP/USD, and look at the chart for Oil, with Ana Thaker, Market Economist, Phillip Capital UK, and joined by Nick Batsford, CEO at Tip TV, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.

Highlights:

GBP/USD – “We could go higher following the rate cut the way Aussie dollar did earlier this week.”

“SO far we have not had any real economic impact of Brexit vote. The fall in Cable is just due to market uncertainty.”

US Oil – “Oil is bit of concern and if we see it continually dip below $40, we may see action from OPEC.”

“Turmoil in the UK market likely in August – as Brexit would weigh over monetary policy accommodation. Article 50 would be the next thing to watch out for.”

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