Bank of England Cuts Rates: British Pound Weakens Sharply

Despite the cut being anticipated, the British pound has weakened significantly, with the negative reaction largely driven by the monetary policy report and policy summary rather than the rate decision itself. The GBP is currently the weakest currency among majors, and the sell-off accelerated after the announcement.

Meanwhile, the Japanese yen is the strongest performer on the currency market today, benefiting from its status as a safe-haven currency amid global uncertainty.

On the futures market, there is positive sentiment, particularly in emerging markets and European indices, which are attempting a rebound following recent declines. While the gains remain modest, the overall tone for futures is optimistic heading into the U.S. trading session.

In the commodities market, metals are undergoing a slight correction, though they continue to trade near elevated levels after their strong start to the year. On the other hand, oil remains under significant pressure, struggling throughout the week and confirming a negative sentiment for energy markets.

The earnings calendar is also in focus, with Amazon set to release its results after the market close today. Yesterday, we saw earnings from Walt Disney, Uber, and Qualcomm, all of which beat expectations, but their price reactions were negative:

• Walt Disney: Despite better-than-expected earnings, the stock lost 2.5% after market open.

• Uber: Published strong earnings but dropped 7.5% following the report.

• Qualcomm: Posted better-than-expected results, but pre-market trading indicates the stock will open 4% lower today.

Traders will be closely watching Amazon’s report today, as it could shape the market sentiment for tech stocks going into Friday’s session.