England`s central bank is expected to issue its rate decision in an announcement tomorrow 9 January 2014. At this time, many experts believe that the policy makers at the Bank of England will likely opt maintain the current rate in line with that of the previous month of December 2013.
As has been discussed in the past, any adjustments made to the interest rate can have a significant impact on the currency itself and on the economy. This rate is often used by central banks to control growth levels by influencing the desirability for borrowing money. As rates become lower, it becomes more attractive for consumers and companies to borrow money since it is cheaper. Should the bank see that inflation is moving out of its intended parameters, it can reign it in by raising rates.
Analysts note that the British economy has been on a course of steady improvement in recent months, producing one positive report after another, particularly on the issues of growth and jobs. Moreover, analysts believe that yesterday`s report detailing the rise of the pound over the dollar helps to highlight the success of the government`s efforts to bring Britain back on the right course. As the current direction appears to be heading at a measured pace, analysts assess that the policy makers will look to make any moves to disrupt the current flow.
Traders are advised to watch for continued rises in the value of the pound in the coming days.
European Central Bank to Issue Rate Decision
The rate decision for the coming month is set to be declared by the European Central Bank tomorrow 9 January 2014. Currently, experts are expressing the opinion that there is a low likelihood of any changes to the standing rate.
Analysts note that despite the slowdown that has been experienced by some of the member states within the eurozone over the past few months, there are some signs of improvement. Europe`s economic powerhouse Germany reported yesterday that they had succeeded in reducing their levels of unemployment, beating out predictions by many experts to the contrary.
Analysts do not believe that the ECB will attempt to make any changes to the interest rate at this time as it is unlikely to make any significant changes to the economies ability to encourage growth. It is currently at a near bottom rate.
WTI Climbs On Speculation of Shrinking Stockpiles
It was reported on 8 January 2014 that prices at the West Texas Intermediate energy market rose as traders speculated that an upcoming government report will show a continued decline in the United States fuel stockpiles. Readers are reminded that after a long period of decline based on the assumption that US reserves were at a high level, the market took a turn after a series of reports proved otherwise. However in recent weeks, the prices have rebounded and appear to be continuing its movement in this direction.
Analysts note that the American Petroleum Institute, the industry`s funded research body has already issued a report showing a significant drop in the stockpiles. This report has helped to add fuel to the fire regarding these speculations. On top of this, the recent cold snap that has struck parts of the US will likely help to raise demand for heating energy, which could add to the demand.
Traders are advised to watch for additional spikes in the price of oil in the coming days leading up to and following the release of the government`s report.