Themes

• General mood is “risk off”
• BoE raises U.K. rates 25bps, as expected
• ECB leaves rates unchanged (as expected) but hawkish in statement

What’s Moving

It all happened in Europe last night, with the Bank of England hiking U.K. interest rates by 25bps as was expected and with the ECB leaving European interest rates unchanged. The BoE is the first major central bank to pivot into a raising cycle. The main comment from ECB’s Lagarde after the announcement that inflation surprises causes unanimous concern on governing council.

Sterling and the Euro were both firm after these headlines hit the tapes.

U.S. Initial Claim printed at 238k and slightly weaker than the 245k number expected.

Thoughts

It should be another consolidatory session in Asia today, with China still on holidays and with the market expected to position itself after the overnight volatility and ahead of tonight’s U.S. Non-Farm Payrolls.

No major data in Asia today, although the RBA will release its Monetary Policy Statement.

Pivot Points