How can BOE Monetary Policy Statement affect the GBP?

How can BOE Monetary Policy Statement affect the GBP?

2023-06-21 • Updated

In May, against expectations of a slowdown, inflation stubbornly held at 8.7%, creating additional pressure on the Bank of England. This comes just a day before the anticipated 13th consecutive interest rate hike to curb price growth. The headline figure places British inflation at the top among major advanced economies. These numbers aren't exactly comfortable for Prime Minister Rishi Sunak, who aimed to cut inflation by half this year before the 2024 election. Moreover, they could lead to increased mortgage costs for homeowners. Economists suggest that the Monetary Policy Committee may need to substantially raise the Bank Rate in the coming months to address the situation. As a result of the release of these figures, the sterling briefly rose against the U.S. dollar and the euro, while two-year government bond yields reached their highest levels since July 2008. Market expectations have shifted, with a 40% chance that the Bank of England will increase rates by half a percentage point to 5% instead of the previously anticipated quarter-point move. By December, there is a 60% chance of rates reaching 6%. The current figures strengthen the case for the government to stay on its chosen path. However, the opposition party Labour has emphasized its focus on the cost of living if it were to come into power. Core inflation, which excludes volatile items, rose unexpectedly to 7.1%, the highest since March 1992, while services price inflation reached its peak since 1992 at 7.4%. Some relief may come from a slowdown in producer price inflation, although expectations of the BoE raising rates six more times to 6% may be excessive.

GBPUSD - 4 Hours Timeframe


GBPUSD was rejected earlier from the weekly pivot, but the price action needs to be more convincing. This may be due to the drop-base-rally demand zone, as the chart above highlights. Also, the moving averages are still clearly aligned in increasing order, often indicating that a bullish trend is in motion. Considering the demand zone, the Fibonacci retracement level, and the 50-period moving average, I will wait for a clear entry based on my convictions (as I’d advise you to do too).

Analyst’s Expectations: 

Direction: Bullish

Target: 1.27204

Invalidation: 1.26307

GBPAUD - Daily Timeframe


GBPAUD is heading even higher toward the marked supply zone. The bullish price action may have lost momentum, but we will see the continuation of the bullish pressure in a short while. At this time, my sentiment on GBPAUD is bullish, mainly based on the following sentiments;

  • Strong bullish previous day candle
  • Microstructure is already broken in a bullish direction
  • Bullish moving average array

Analyst’s Expectations: 

Direction: Bullish

Target: 1.89740

Invalidation: 1.87380

GBPJPY - 4 Hours Timeframe


GBPJPY has just been pushed back out of the weekly pivot zone by immense selling pressure in the market. This seems to suggest that we should see a fresh wave of sellers entering into the market to push GBPJPY even further down toward the 50-period moving average at the very least.

Analyst’s Expectations: 

Direction: Bearish

Target: 179.307

Invalidation: 181.621

GBPCAD - Daily Timeframe


The current position of GBPCAD, as revealed by the chart above, shows that the price action is currently resting on a rally-base-rally demand zone, with a confluence from the 50-Day moving average. Based on the bullish array of the moving averages, demand zone, and trendline support, we may expect to see even higher prices on the GBPCAD currency chart over the next few days.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.70078

Invalidation: 1.66851


The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.


You can access more of such trade ideas and prompt market updates on the telegram channel.


CAD: Markets Await GDP Release
CAD: Markets Await GDP Release

During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...

Trade of The Week: AUDNZD Trade Breakdown
Trade of The Week: AUDNZD Trade Breakdown

The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...

XAUUSD: Markets Slow Down Ahead of NFP
XAUUSD: Markets Slow Down Ahead of NFP

Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera