Market sentiment slightly improved
USD’s rally takes a pause, while riskier assets are modestly rising.
Will the GBP get stronger on BOE’s policy?
BOE releases the monetary policy meeting minutes on Thursday at 14:00 MT time.
Instruments to trade: EUR/GBP, GBP/USD, GBP/JPY, GBP/CHF
The last meeting of the Bank of England left the interest rate at 0.1% and the bond-buying program at 645 billion pounds, and that was a month ago. Since then, on the one hand, the British economy managed to make certain progress towards recovery, but on the other hand, things don’t seem to get less complicated. It may be even the opposite, with the current recession recognized as the worst in decades, and Brexit pressing on the GBP with the inevitability of timelines. Details of the monetary policy meeting may reveal more information which is a necessary fuel for the GBP to get through the hardships it is in now, and that we will see on Thursday.
- If the minutes give an optimistic economic outlook, the GBP will gain value.
- Otherwise, it will fall.
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Lots and lots of PMIs on Friday
PMI reports from the EU, the UK, and the USA will be released during the day!
ECB report is in focus
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
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