Global macro overview for 09/10/2015:
Yesterdays BoE rate decision did not surprise the market participants as the MPC had voted 8-1 to keep the interest rates unchanged at the level of 0,5%. The risk of a further global slowdown against a resilient domestic demand and consumer spending were blamed for the inflation expectation might not be able to hit 1% before Spring 2016. Despite the recent wage growth and pick up in UK manufacturing and services, the unit-labor costs are not strong enough to push the inflation expectation above the 2% BoE target.
The GBP/USD pair's response was bullish and the market has recently hit the 50%Fibo at the level of 1.5380. The next resistance is seen at the level of 1.5447 (61%Fibo) and support is seen at the level of 1.5261.