Upside hopes for the GBP?
The British monthly GDP is announced on Friday at 09:00 MT time.
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.
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