The Bank of England will publish a monetary policy summary on Thursday, June 16, at 14:00 MT time (GMT+3).
Big Event for GBP: Bank of England’s Statement
Information is not investment advice
What will happen?
The Bank of England will hold a meeting on Thursday at 14:00 MT time (GMT+3). It will affect the British pound significantly and as a result such pairs as GBP/USD, EUR/GBP, and GBP/JPY. The central bank’s members will share their thoughts over the current economic conditions in the UK and their plans to change the policy.
Why is it important?
The Bank of England sooner or later should start tightening the policy. Traders are watching closely the central banks’ actions as any hints of a soon tightening will send the British pound soaring. More importantly, last week, BOE Governor Andrew Bailey hinted that half of the Monetary Policy Committee members agree that the necessary conditions for policy tightening were met.
Last time, the Bank of England left the policy unchanged and it pressed the GBP down by 210 points.
How to trade on BOE Statement?
- If the BOE claims that tightening comes sooner than expected, the GBP will jump.
- Otherwise, drop.
Instruments to trade: GBP/USD, EUR/GBP, and GBP/JPY.
The Federal Reserve will make a statement regarding the future monetary policy on Wednesday, June 15, at 21:00 MT time (GMT+3).
The US PPI will come out on Thursday, May 12, at 15:30 MT time.
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.