U.K. BOE Interest Rate Decision
The key event from the U.K. will be BOE Interest Rate Decision and Monetary Policy Statement. The rate decision is usually priced in the market, so it tends to be overshadowed by the Monetary Policy Summary, which is focused on the future.
Monetary Policy Summary is among the primary tools the MPC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.
The Bank of England is widely expected to leave policy unchanged. The BoE is likely to be least dovish today, but with stocks falling and worry over Delta variant spreading, it may avoid talking about raising interest rates.
Let’s how GBP has reacted during the previous data release:
- The sterling trades marginally higher ahead of U.K.’s Interest Rate Decision due at 11 GMT.
- Today pair made intraday high at $1.3657 and low at $1.3609 mark.
- A day chart and H1 chart with triple EMA suggests bearish trend for the time being.
- A sustained close above $1.3668 on H1 chart will check key resistances.
- Alternatively, a consistent close below $1.3610 will check further supports.
Take a look and do trade wisely!