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.
Will the BOE Act as the Lockdown Is Over?
What will happen?
The Bank of England will publish a monetary policy statement and update on the interest rate on Thursday, at 14:00 MT time. The statement normally contains commentary about the economic conditions and insights into further monetary policy decisions. After coronavirus restrictions were over, analysts started discussing possible adjustments to the bank's monetary policy. According to the recent reports, we won't see any stimulus changes next week. Will the regulator confirm it?
How to trade on the BOE Interest Rate Decision?
Due to analysts' predictions, traders need to pay particular attention to the changes made in the statement. If the Bank of England expresses readiness for stimulus reduction, the GBP may strengthen.
- If the BOE suggests tightening of its monetary policy, the GBP will strengthen;
- If the BOE expresses cautiousness, the GBP will weaken.
Instruments to trade: GBP/USD, EUR/GBP, GBP/JPY
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 US Bureau of Labor Statistics will release its Consumer Price Index and many other critical events that will move the market this week!
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Consumer Price Index, Existing Home Sales, US Fed rate decision - all of these things we will discuss in our new review. Don't miss it out!
The RBA and the Bank of Canada will add volatility to the AUD and the CAD, while USD is expected to be boosted by the Non-farm payrolls.