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 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
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 Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.