The key event today will be the Bank of England's (BoE) rate decision at 13:00 CET. We expect the BoE to cut the Bank Rate by 25bp, down to 0.25%, and look for an expansion in its stock of purchased assets of GBP75bn. Moreover, we think it is likely the BoE will ease through its Funding for Lending Scheme. Also, we expect the BoE to maintain a very dovish stance, signalling readiness to ease further if necessary. In our view, this should help underpin the markets expectation of additional easing further down the road. Please see Bank of England Preview: Substantial package of easing measures for further details.
Today, US initial jobless claims data is due out (14:30 CET), as well as factory orders and durable goods orders for June (16:00 CET).
Dallas Fed President Robert Kaplan is due to speak (12:15 CET) in Shanghai.
To read the entire report Please click on the pdf File Below