The British monthly GDP is announced on Friday at 09:00 MT time.
The Bank of England may support the GBP
The Monetary policy committee of the Bank of England will vote on the level of interest rate and release its monetary policy summary on March 21, at 14:00 MT time.
The bank is expected to keep its interest rate unchanged at 0.75%. The main focus of traders will be on the tone of the monetary policy summary. Last time the BOE governor Mark Carney said that the central bank would provide all the necessary support for the stability of the GBP. It helped the GBP to recover. The hawkish comments during this meeting may push the GBP up.
- If the BOE is hawkish, the GBP will rise;
- If the BOE is dovish, the GBP will fall.
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The USD continues dipping, while the GBP is rising on hopes for the Brexit deal done today.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.