Thread: Be Prepared! European Interest Rate Cuts Expected Tomorrow 12:00 GMT

Be Prepared!Global Forex Markets
European Interest Rate Cuts Expected Tomorrow 12:00 GMT
We at ForexYard encourage our customers to get involved in the most intense market events. As such, we think you should know that the British Official Bank Rate and Euro-Zone Minimum Bid Rate figures are expected tomorrow, December 4th, at 12:00 and 12:45 GMT, respectively, and you need to be prepared. Market events like these tend to create either big changes to current trends or push current trends even further. Generally, the Majors are the ones most affected by market events in general but Crude Oil, Gold prices, and even the price of Silver can change dramatically in the seconds after such a publication. For more information about these Euro-Zone Interest Rates.

What are the European Interest Rate Figures?
Expected to be released tomorrow are the target Interest Rates of the Bank of England (BoE) and European Central Bank (ECB). These are called the Official Bank Rate and Minimum Bid Rate, respectively.
These figures are each released monthly, usually during the first week of the month. They are important because short-term Interest Rates are the leading factor in determining the value of a currency. In fact, most other economic indicators are used by traders to speculate about the future movement of these Interest Rates.
The British Official Bank Rate is decided on by the Monetary Policy Committee of the BoE. The Euro-Zone Minimum Bid Rate is decided on by the 6 members of the ECB as well as the central bank governors from each of the 15 nations in the European Monetary Union. According to the needs of each respective economy, the banks will elect to increase, decrease, or leave the rate unchanged. Traders pay close attention to these figures as they have a strong correlation with the value of the GBP and EUR.

America's employment situation to deteriorate further


The dollar will remain relatively high major currencies against the negative news in spite of the series. EUR / USD:'s trade is 1.2700's spot-level and USD / JPY is testing 92.00's performance. Even a very worrying news for America's employment situation is not managed to lose USD's favor. Of automatic data processing organization (ADP) published yesterday in their assessment, eliminating agricultural employment index (Non-Farm Employment Change). The published figure for the additional 250 000 people have applied for unemployment benefit in November the first time. Normally, such a result would have profound impact on the dollar, but now investors seem heedless. It should also be taken into account that in October alone 240 000 people lost their jobs, and these results, the continuation is a clear sign that the U.S. economy is far from getting to the recession. Weak scenario could grow worse each day. Yesterday, the supply management institute (ISM) published the Acquisitions index (PMI), which fell to 37.3 points and was the fourth consecutive drop from August onwards. Today, America's leading news will be the unemployment compensation figure. The result is expected to be 540 000 people, who in recent weeks, applied for unemployment benefit first time. Such a result would mean a continuation of recent concerns regarding the U.S. reports, which threatens the publication hurt the dollar. Investors should keep an eye on developments in the euro zone, because the base rate cut is at hand. This incident not to become the biggest impact on the leading currencies.