Money News Overview Monday 29th July: Fed and Bank of England policy announcements this week

A quiet start to the week ahead of Thursdays Bank of England interest rate announcement.

Today we have the consumer lending figures for the UK and CBI distributive trades survey.

Over the weekend the pound declined against both the euro and the USD ahead of this week’s Bank of England policy announcement.

Markets are currently pricing in a 50 percent chance of a rate cut on Thursday.

There is likely to be further GBP weakness over the coming days ahead of the Bank of England’s all-important announcement.

For the US, the jobs report on Friday will also be closely watched and can play a key role on the Feds next policy decision. Should the date come in weaker than expected, the market will likely price in more policy easing from the Federal Reserve for the coming months, which will weigh on the dollar.

The Fed policy announcement is due on Wednesday, where it is expected that there will be no change in interest rates.

Markets will be keen to see what comments come from the announcement, where it is expected there will be cautious guidance that is consistent with expectations for a first-rate interest rate cut in September.

Finally for the week, we have the GDP figures for France and Germany on Tuesday, retail sales for Germany on Wednesday and house price data for the UK on Thursday. 

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