The US Bureau of Labor Statistics will release its Consumer Price Index and many other critical events that will move the market this week!
BOE meeting will influence the GBP
What will happen?
The Bank of England will release its statement and announce its monetary policy decision on June 24 at 14:00 MT. Last time, the Bank of England kept its monetary policy unchanged, and slowed down the pace of asset purchases, indicating it is on the way to end emergency support later this year. Besides, the central bank lifted the 2021 GDP forecast to 7.25 % from the previous 5 % growth.
However, the UK delayed the lockdown easing, and this fact can negatively influence both the consumer and business confidence. Beyond the virus problem, the British economy has another headwind: EU-UK trade tensions centered on Northern Ireland. Thus, the central bank may avoid any hawkish moves this time.
How to trade on the BOE meeting?
The market reaction depends on the Bank of England’s economic outlook. If the Bank of England gives positive projections on the UK economy and/or hints soon policy tightening, the GBP will strengthen. If the central bank expresses some concerns, the GBP will weaken.
- If the BOE is optimistic, the GBP will rise.
- If the BOE is uncertain or cautious, the GBP will drop.
Instruments to trade: GBP/USD, GBP/JPY, EUR/GBP
The G20 summit and the US PPI release gave us a lot of volatility to trade on. Luckily, today’s markets may be even more volatile with new vital releases and geopolitical decisions. The daily news report will surely help you!
The results of the Chinese Communis Party's Congress shook the markets, while the JPY weakened even after the interventions were conducted
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.
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.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.