Focus today will be on the monetary policy announcement from the Bank of England (BoE). We expect the BoE to make a precautionary 25bp cut from 0.50% to 0.25% and at the same time communicate that more easing could come (see Bank of England preview: Precautionary cut in July, more easing in August , 12 July 2016).
It is still fairly quiet in terms of economic data releases. In the US, the weekly initial claims figures are due out today.
Fed members Lockhart (non-voter, neutral) and George (voter, hawkish) are scheduled to speak today. Comments on the effects of Brexit and the stronger upbeat employment numbers in June will be most interesting.
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