The winter is coming, and risky markets expect a rally to come with it. Will this December be bullish for stocks, crypto, and gold? A pack of news will surely help you out.
Will the BOE manage to keep the GBP standing?
The Bank of England’s interest rate announcement and monetary report will be out at 14:00 MT on January 30.
2020 will be a difficult year for the GBP. Brexit deadlines are coming, concerns about the British economy have increased – all this creates a negative environment for the British pound. The BOE maintained the key rate at 0.75% in December and is likely to do so once again on January 30. However, the question is not whether there will be a rate cut, but rather, whether the policymakers incline towards it or not. Two out of nine members of the bank’s Committee voted for a cut during the last two meetings. If the number of rate cut supporters increases at the January session, it will mean that the central bank will actually lower the rate at some point this year. That will be especially likely, given the uneasy context of the UK-EU divorce. All in all, let’s wait for Thursday and read into the details.
- If the support of a rate cut grows within the BOE Committee, the GBP will drop.
- If the BOE Committee remains firm on keeping the rate unchanged, the GBP will rise.
Bloomberg says yesterday’s movement was so far the wildest. It was the first time in history for the US500 to crash by 2% and close the day 2.8% above the neutral line. There’re several possible reasons for the move.
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.
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.
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 United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.