FTSE 100 Rises Ahead of BoE Rate Decision on Thursday

The FTSE 100’s start on Monday morning, June 17, 2024, was positive. It is currently up 0.34% to 8,174.75. This follows Friday’s 0.21% fall, which saw London’s blue-chip index close down 16.81 points at 8146.86.

EARNINGS RELEASES & ECONOMIC EVENTS

There are two essential releases this week regarding UK economic data. Firstly, UK inflation data will be reported on Wednesday. The year-on-year inflation rate is forecast to come in at 1,9%, below the previous reading of 2.3%. In addition, a Bank of England interest rate decision will be reported on Thursday, with rates expected to hold steady at 5.25%.  

Last week, analysts at Bank of America said they see the Bank of England (BoE) keeping rates steady at the policy meeting due to a lack of evidence to merit a cut and the upcoming UK election. They anticipate a 7-2 vote in favor of holding rates. The bank also cited a “political dimension to the decision” due to the upcoming general election.

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When it comes to the UK corporate diary, a few well-known names will be providing updates to the market. These include Ashtead Group, Berkeley Group, CMC Markets, and DS Smith.

FOREX & GOLD

As of 08:05 am, the pound has edged around 0.1% lower to 1.2673 after closing Friday’s session down 0.6% at 1.2684. The euro has moved just a little lower, currently down 0.04% at 1.0697 after, it closed Friday down 0.3% at 1.0702. 

Gold is currently at $2,318 after falling 0.6%.

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