US Initial jobless claims will be announced on Thursday at 15:30 MT time.
How to trade GBP after BOE statement?
Keep an eye on the UK monetary policy statement on September 17 at 14:00 MT time!
Instruments to trade: EUR/GBP, GBP/USD, GBP/JPY, GBP/CHF
The last time the Bank of England maintained the bank rate at a record low of 0.1% and the number of its asset purchases at 745 billion pounds. Officials warned that the British economy will take more time to rebound after the coronavirus damage than it was expected before. The central bank also mentioned a probability of negative interest rates. As for the British pound itself, it has been performing really great since late July amid the risk-on sentiment and hopes for a soon Brexit agreement. However, those expectations erased as EU-UK negotiators had failed to make any progress so far. The further prolongation of the Brexit deal will weigh more on the pound. That’s why this meeting is widely watched by all investors as it will unveil further BOE’s actions to cope with all the problems.
- If the bank is hawkish, the GBP appreciates;
- If the bank is dovish, the GBP drops.
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
China’s Manufacturing PMI will be out on Wednesday at 04:00 MT time!
China's industrial rebound, progress in US fiscal stimulus and other important news in this article.
The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!