The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
Big Event for GBP: Bank of England’s Statement
What will happen?
The Bank of England will hold a meeting on Thursday at 14:00 MT time (GMT+3). It will affect the British pound significantly and as a result such pairs as GBP/USD, EUR/GBP, and GBP/JPY. The central bank’s members will share their thoughts over the current economic conditions in the UK and their plans to change the policy.
Why is it important?
The Bank of England sooner or later should start tightening the policy. Traders are watching closely the central banks’ actions as any hints of a soon tightening will send the British pound soaring. More importantly, last week, BOE Governor Andrew Bailey hinted that half of the Monetary Policy Committee members agree that the necessary conditions for policy tightening were met.
Last time, the Bank of England left the policy unchanged and it pressed the GBP down by 210 points.
How to trade on BOE Statement?
- If the BOE claims that tightening comes sooner than expected, the GBP will jump.
- Otherwise, drop.
Instruments to trade: GBP/USD, EUR/GBP, and GBP/JPY.
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