Find out the reasons!
GBP is in focus
Information is not investment advice
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time.
Instruments to trade: EUR/GBP, GBP/USD, GBP/JPY, GBP/CHF
Analysts widely expect that the Bank of England will leave rates unchanged this time. Officials set the key bank rate at the record low at 0.1% on June 18 this year. It was one of the support measures taken by the central bank to mitigate the damage from the coronavirus. Also, the BOE will continue buying assets within its existing program to stimulate the faster recovery of the economic activity. Officials assure that they will do whatever it takes to save the country. Unlike other countries, the United Kingdom has to solve two severe problems simultaneously: coronavirus and Brexit. Thus, it’s really significant what course of events the central bank foresees for the country. The most important for traders is to follow news after the release to get the BOE’s message.
If the BOE says that the UK’s economy is recovering faster than expected, the GBP will rise.
Otherwise, if the BOE claims that the economic recovery will be uncertain and bumpy, the GBP will fall.
The Non-Farm payrolls are announced on Friday at 15:30 MT time.
S&P 500 takes a pause near the all-time high, while the US dollar remains at the lowest levels since 2018.
A lot of news came out that may impact the market. It’s surely not the time to rely only on technical analysis!