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FTSE 100 suspects no change from the BOE tomorrow?

The FTSE 100 was the second best major index performer yesterday, as just noted in the previous update. Now, given that the headline annualised UK CPI inflation data fell to exactly 2% earlier this morning, one might have expected the FTSE 100 futures to have bounded higher again? The index closed yesterday at 8,191, after narrowly rejecting a rebound back above the 8,200 handle. The index peaked yesterday at 8,199 and it looks like that 8,200 level might be providing resistance once again. So, now that UK CPI has hit the BOE 2% target today, perhaps more normally the markets might be gunning for a rate cut from the BOE tomorrow? Well, that does not seem to be the case and it is surely because of the UK election on July 4. The BOE cannot seemingly lower rates this close to that event or risk political motivation for doing so. That said such a move is not entirely ruled out here. There will be more to add on this tomorrow. Meantime the FTSE 100 is about to reopen an the calls on that are around 8,180 right now 

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