All eyes on Bank of England

Instruments to trade: EUR/GBP, GBP/USD, GBP/CAD, GBP/CHF

The BOE will announce its monetary policy and rate decision on Thursday at 14:00 MT time. Let’s find out how this report will impact the pound. Just a month ago the central bank left the bank rate at the record low of 0.1% and increased the size of the bond-buying program more than expected: from 150 billion to 875 billion pounds. Elsewhere, it downgraded its projections on the UK GDP from -5.4% to -11% for the fourth quarter of 2020. The UK is going through one of the toughest periods in its history as it should cope with two problems simultaneously: Brexit and the coronavirus pandemic.

If the BOE hints at lower rates and its tone is pessimistic, the GBP will fall.
If the BOE leaves everything unchanged and upgrades its forecasts, the GBP will rise.

Check the economic calendar

TRADE NOW

gbp

bank of england

FBS Analyst Team

More by this author

Similar

15.03.2023 15:42 Crucial News For The Following Week

Consumer Price Index, Existing Home Sales, US Fed rate decision - all of these things we will discuss in our new review. Don't miss it out!

30.01.2023 11:54 Market Crash Incoming?

This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.

20.01.2023 15:54 What Currency Will Overperform?

S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.