Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
British Interest Rate Update
What will happen?
The Bank of England will reveal MPC official bank rate votes and official bank rate and make a monetary policy summary on March 17, at 14:00 MT time. These releases have a direct impact on GBP.
How will GBP react?
Due to the Russian-Ukrainian conflict, which affects everything now, it’s difficult to predict what monetary policy BOE will choose. Other countries, for example, Australia, don’t rush to raise interest rates because of all the suspense over geopolitical news. We assume that the Bank of England might not increase the official bank rate, even though the British are probably waiting for harsh actions.
On February 3, 2022, the last release caused a massive leap of the pound. GBPUSD surged to 1.36300.
How to trade on the BOE official rate release?
The higher the actual rate relative to the “Forecast”, the better for the currency.
Check the Economic Calendar
Instruments to trade: GBPUSD, EURGBP, GBPCAD, GBPJPY.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.