Sterling Remains Volatile Ahead of BOE’s Interest Rate Decision, 50+ PIP Movement Likely in GBP Parity; March 18, 2021

U.K. BOE Interest Rate Decision

Today BOE has scheduled to release Interest Rate Decision and Monetary Policy Summary at 1200 GMT/1730 IST. 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. Today MPC members will vote on where to set the rate. MPC members vote on the total amount of money to create for the program. The individual votes are published 2 weeks later in the MPC Meeting Minutes. 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.

In today’s BOE’s meet, markets expect key interest rate will remain unchanged but any hint regarding timing of the rate hike would be advantage to predict the economic recovery. Currently U.K. is focusing on vaccine roll out efficiently. Most probably all adults in U.K. are likely to receive a first vaccine dose by early June. Just Like U.S. yield, 10 – year U.K. gilts are also rising sharply and pushing the sterling higher. Chances are high that U.K. policymakers may open the option of negative interest rate on table and introduce additional guidance to get the economy back on the track.

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

Feb 04:

Dec 17:

Technical View:

GBP/USD: The pound exhibits range bound movement ahead of BoE’s Interest Rate decision and remains well supported below $1.40 mark. The pair made intraday high at $1.4001 and low at $1.3935 mark. Triple EMA on a day chart and H1 chart confirm bullish trend for the time being. A sustained close above $1.3992 on H1 chart requires for the upside rally. On the other hand, consistent close below $1.3940 on H1 will test further supports too.

Key Resistances: $.4001, $1.4032, $1.4077, $1.4112, $1.4150

Key Supports: $1.3940, $1.3885, $1.3862, $1.3816, $1.3750

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
+1 7754366970

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