*Last night, international credit rating agency Fitch Ratings downgraded the United States’ long-term credit rating from AAA to AA+ and changed its outlook from negative to stable. With this decision, Moody’s remains the only major credit rating agency to give the US the highest credit rating.

*Today, at 15:15, the ADP Non-Farm Employment Change data for the US was released, and it came in much stronger than expected. The July data showed an increase of 324,000 jobs, while the June data was revised from 497,000 to 455,000 jobs. This data indicates that the employment situation in the US is still robust and suggests that the Non-Farm Payrolls report on Friday may also be strong. Following the data release, the US Dollar Index showed a slight positive trend.

*Tomorrow, the Bank of England’s policy meeting will take place, and a 25 basis point interest rate hike, bringing the rate to 5.25%, is anticipated. However, an important question remains about whether the central bank will need further interest rate hikes and tightening measures to control inflation pressures. There is a general expectation in the market that the BOE will continue its policy trend and leave the door open for further tightening based on incoming data.

*According to a survey by YouGov, inflation expectations for the UK have declined. The one-year inflation expectation has dropped from 5% to 4.3%, and the inflation expectations for 5-10 years ahead have decreased from 3.3% to 3.2%. Market pricing currently indicates a 62% probability of a 25 basis point interest rate hike and a 38% probability of a 50 basis point hike. The terminal peak rate expectation has also decreased to 5.76%, indicating reduced concerns about inflation and contributing to the strength of the British Pound.