The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
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
The Bank of England will announce its policy statement on December 16, Thursday, at 14:00 GMT+2 (MetaTrader time). It will affect all the pairs with the British pound.
The United Kingdom will publish the Inflation Rate on November 17, at 09:00 MT (GMT+2). How will it impact the markets?
The US Bureau of Labor Statistics will announce average hourly earnings, nonfarm employment change (NFP), and the unemployment rate on July 8, at 15:30 MT time.
The Federal Open Market Committee, a committee within the Federal Reserve, will reveal a detailed record of the central bank’s last meeting on July 6 at 21:00 MT.
The Reserve Bank of Australia will announce its cash rate and make a statement about future rate policy on Tuesday, July 5, at 07:30 MT.