ECB is ready to take the decision about the key rate. What to expect from officials? Oil prices are high, and economy indicators demonstrate the slowing down in the strongest European economies.
Will the GBP stay steady?
What will happen?
Bank of England announces the rate and the monetary policy report on March 18, at 14:00 MT time.
The rate will most probably be kept steady at the record low of 0.1%. In the meantime, the last session indicated that the Bank may soon start preparing for a negative rate closer to the end of the year. Also, they will shed light on the economic recovery in the UK in the context of the post-Brexit environment, gradual reopening, and new strains of the virus that cloud the perspectives of getting back to normal.
How to trade the BOE rate?
As with other similar announcements when no actual rate change is expected, you look into the subtler messages of the Bank’s officials. Generally, if they share a brighter outlook, the national currency gets stronger. Otherwise, a weaker tone puts pressure on it.
- If the BOE is optimistic about the recovery dynamics, the GBP may be boosted;
- If the BOE shares a dull outlook, the GBP may fall.
Instruments to trade: GBP/USD, EUR/GBP, GBP/CHF, GBP/CAD
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