The Bank of England will hold a meeting on Thursday at 14:00 MT time (GMT+3).
All attention to pound
The Bank of England will deliver monetary policy and rate reports on Thursday at 09:00 MT time.
Instruments to trade: EUR/GBP, GBP/USD, GBP/CAD, GBP/CHF
The Bank of England set the rate at a record low of 0.1% and the size of its bond-buying program at 745 billion pounds. UK officials claimed that the UK economic data were slightly better than expected in August. However, the outlook for the economy remains highly uncertain due to the rising coronavirus cases and Brexit developments. That’s why the BoE can still impose negative interest rates and expand its quantitative easing, which will push the pound down. Besides, the central bank claimed it won’t tighten monetary policy until the economy is stable, coronavirus is taken under control and inflation approaches the targeted 2%.
- If the bank gives optimistic guidelines, the GBP rises;
- If the bank has a pessimistic outlook, the GBP drops.
The US showed strong retail sales for August despite the spread of the Delta virus strain. As a result, the US dollar rocketed and gold dropped by 2286 points in half an hour after the release.
The next week is going to be interesting for traders. The US, UK, and Canada will reveal the inflation data. Australia will show the labor numbers, while New Zealand – GDP growth.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.
The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!