FX.co ★ FTSE 100 Trades Cautiously Higher Ahead BoE Decision

On Thursday, the FTSE 100 showed minimal movement, with a slight uptick as market participants awaited the Bank of England's forthcoming announcement and analyzed the Federal Reserve's recent quarter-point interest rate cut. Although the Fed's decision met expectations, it hinted at a more cautious approach toward further easing, yet acknowledged the potential for two additional cuts this year due to ongoing labor market vulnerabilities. The stronger dollar benefited large multinational companies, while the retailer Next dragged down the index significantly, falling over 6% following an unusual report that omitted a guidance upgrade. Despite reporting a 10% rise in first-half sales and a 14% increase in profit—figures that surpassed forecasts—Next maintained its annual guidance and cautioned about slowed growth in the second half. The company attributed its cautious outlook to weakening employment and sluggish growth in the UK, even as it announced an increase in dividends.