BMW’s Q2 lost a fifth of a step, Mexico is coming up short of its own expectations, & The BoE has made changes to its forecasts and more.
The Bank of England gave no indication it was considering lowering interest rates like other central banks, but cut its growth forecasts on Thursday in the face of increased Brexit worries and a slowing global economy. Affects GBP
Hit by exchange rate moves and investments in manufacturing electric and hybrid cars to help meet stricter emissions limits, BMW’s (BMWG.DE) second quarter earnings fell by a fifth. Affects BMW
A bill to place sanctions on companies and individuals involved in building the Nord Stream 2 gas pipeline from Russia to Germany that the Trump administration says would strengthen Moscow’s economic grip on Europe was passed by a U.S. Senate committee passed a bill on Wednesday. Affects the DAX 30
Mexico’s Finance Ministry has lowered its growth forecast to 1.1% as evidence mounts that Latin America’s second-largest economy is falling short of expectations. Affects MXN
To prevent inflation from slipping too far below target Brazil’s central bank cut its benchmark interest rate to a new low of 6.00% on Wednesday, an aggressive first move in a widely anticipated easing cycle to inject life into a moribund economy and. Affects MSCI Brazil
The British Construction PMI for July will be released. The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers in the construction industry. Affects GBP.
The U.S. Nonfarm Payrolls for July will be published. Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Affects USD.
The Bank of England lowered its forecast for economic growth due to Brexit risk.The head of the BoE Mark Carney, said that the situation in the global economy will be a key factor in the banks future actions.
Quotes fell below the Fibonacci level of 0.236 so the asste’s new target may be its support level at 7500.
This currency pair resumed its downtrend after the Fed’s decision to lower the interest rate. An increase in volatility can help it break through the rising level of support.
Fundamental reasons aside there are technical factors for the decline in BMW’s stock price. A Flag has formed on its chart and quotes have dropped below 68, it seems likely this trend will continue.
GBP/USD on this day in history
- Since 2000 August 1st has been a trading day 14 times.
- On 71% of those days, the asset ended with growth.
- The maximum reinforcement range was 1.36%.
- The trend down was limited to 0.82%.