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.
What does the Bank of England have to say?
The Bank of England’s Monetary Policy Summary will be announced on Thursday at 14:00 MT time.
Instruments to trade: EUR/GBP, GBP/JPY, GBP/CHF, GBP/CAD
The Bank of England lowered its interest rate by 50 bps on March 11, making it 0.25%. Coupled with the quantitative ease package, this appears to be a significant stimulus to support the British economy, which is now under the pressure of several burdens such as the virus and Brexit consequences. Amid all this, the position of the GBP generally doesn’t look too bright. Fundamentally, the market is not really impressed with the government’s reaction to the virus. Its main impression is that the UK’s lawmakers are lagging behind compared to their European colleagues who went all-in with maximum restrictions to contain the virus. That’s the main factor pushing investors away from the GBP. Possibly, the Bank of England will bring some reassuring notes from the financial side on Thursday – that would help the GBP stay afloat.
- If the bank’s mood is hawkish, the GBP appreciates;
- If the bank’s mood is dovish, the GBP drops.
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!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.