Gtag:

Sterling Appreciates Ahead of BOE’s Policy Rate Decision, 40+PIP Volatility Likely; May 06, 2021

U.K. BOE Interest Rate Decision

The key event for the day will be BOE’s Interest Rate Decision. 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. Short term interest rates are the paramount factor in currency valuation – traders look at most other indicators merely to predict how rates will change in the future. In addition, 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.

Just like other Reserve Banks, BOE is also widely expected to leave the policy rate unchanged. BOE might give hint on tapering but most probably BOE is likely to upgrade the economic forecasts. In U.K., half of the population has taken at least on doze of vaccination and new daily virus cases have also fallen drastically. The best thing about U.K. is that the country is ready to reopen fully by ending all lockdown restrictions on June 21st. When the country fully reopens, we will see an even bigger boost to economic growth.

Let’s see how GBP has reacted during the previous data release:

March 18:

Feb 04:

Technical View:

GBP/USD: The Sterling remains volatile ahead U.K. BOE’s Official Cash Rate Decision. The pair made intraday high at $1.3913 and low at $1.3885 mark. A day chart as well as H1 chart with triple EMA confirms the uptrend for the time being only. A sustained close above $1.3911 requires for the upside rally. Alternatively, a consistent close below $1.3882 will check further key supports.

Key Resistances: $1.3927, $1.3954, $1.3978, $1.4001, $1.4022

Key Supports: $1.3882, $1.3850, $1.3802, $1.3776, $1.3740

Take a look and do trade wisely!
Good Luck

Tags
Share on facebook
Share on linkedin
Share on twitter
Share on telegram
Share on whatsapp
Unleash Powerful Trading Conditions with TP Global.

Recent Posts

Categories

Offices

305 Griffith Corporate Park, Beachmont Kingston, Saint Vincent & the Grenadines

Mail us

Drop mail at:
support@tpglobalfx.com

Contact us

Call or Whatsapp
+44 7441 416320

Risk Warning: Forex and Contracts for Difference (CFDs) are leveraged products. Trading in these products is highly speculative and involves substantial risk. Please note that even knowledgeable and well-experienced investors can experience large potential losses as a result of trading in Forex and CFDs. Consequently, investors should be fully aware of all the risks involved when trading Forex and CFDs and accept all the negative consequences associated with such trading. Please always remember that trading in Forex and CFDs might not be suitable for all investors. It is desirable investors who would consider trading, to do so only with money that they can afford to lose. You are also recommended to seek independent financial advice if necessary. The content on this website does not constitute financial or investment advice. Any information herein is of a general nature and does not take into consideration your personal circumstances, investment experience or current financial situation. Apple, the Apple logo, iPod, iPad, iPod touch, and iTunes are trademarks of Apple Inc, registered in the US and other countries. iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc. This site is run and operated by - TP Global Services Limited registered by St. Vincent and the Grenadines with Number 25274 BC 2019. Registered office: Suite 305, Griffith Corporate Centre, Beachmont, P.O.Box 1510, Kingstown Saint Vincent and the Grenadines

TP Global Fx Africa Limited is incorporated in Federal Republic of Nigeria under the Companies and Allied matters Act 1990 with registration number RC 1674202. The objects of the company are all subject matters not forbidden by Companies and Allied Matters Act 1990. To provide Electronic Platform through which clients can choose currencies, commodities, indexes, CFDs and other leveraged financial instruments to trade.

TP Global Services Limited is registered with NFA (National Futures Association) USA with Registration Number 0533098.

mappin at-sign phone close