The opening segment of today’s London open show has Tip TV’s Zak Mir and Bill Hubard, Chief Economist at Trade.com talk extensively about the direction in which the Bank of England is moving with and whether ultra easing effort is justified at the current juncture. Hubard also weighs in on the political developments in the UK and their effects on the UK assets.
While talking about BOE, Hubard says a 25 basis points (bps) rate cut today would be surprising, given we have not had major data releases related to post Brexit period. Coming to UK politics, Hubard takes note of the drop in sterling after May took over the charge of the Downing Street.
Regarding Fed rate hike bets, Hubard is of the opinion that the fed funds futures have been overtly dovish since last June and have now turned severely dovish. The point that he intends to make is that markets are not discounting the possibility of Fed moving rates this year.
The show also includes discussion on the COE report, comments from Investors Chronicle and Broker forecasts. The segment concludes with a look at the trade of the day.