USD came under selling pressure
The US dollar’s weakness offered a boost to emerging-market currencies and oil.
Bank of England’s Meeting
Every meeting of a central bank is very important for a currency. It’s usually after these meetings when we get big intraday swings and even changes in major Forex trends. Central banks announce interest rates. Higher rates are positive for a currency, while lower rates make it depreciate.
Many traders had expected the Bank of England to raise rates this year, and the British pound was rising versus the US dollar up until the middle of April. Then things changed. Britain’s economic indicators got worse, the expectations of higher rates evaporated and GBP/USD went down.
At the end of May, the Bank of England’s governor Mark Carney said that the central bank may pump more stimulus into Britain’s economy if this year’s Brexit negotiations result in a bad deal. This is a sign that the Bank of England is really worried. The impact on the pound is very negative.
The new meeting of the UK central bank will draw the attention of all Forex traders. Will it give another signal leading to the pound’s selloff? We will find this out at 14:00 MT time on June 21.
• If the Bank of England sounds positive, the British pound will appreciate.
• If the Bank of England sounds negative, the British pound will go down.
Similar
Upside hopes for the GBP?
The British monthly GDP is announced on Friday at 09:00 MT time.
Strong USD on Tuesday
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