U.K. Interest Rate Decision
The key event form the U.K. will be Country’s Cash Rate Decision and Monetary Policy Statement scheduled at 1200 GMT/1730 IST. 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. Monetary Policy discusses the economic outlook and offers clues on the outcome of future votes.
During the last BOE Meet, a number of U.K. MPC members suggested that interest rate hikes may come sooner but while watching the current Omicron Scenario in U.K., it seems difficult to keep the said words. Now the big questing for U.K. MPC is whether they will look recently released economic results and decide the timings of the Interest Rate Hike or will stay on halt for rising interest rates due to Omircon Virus fear.
Let’s See How GBP has Reacted during the previous data release:
- The sterling appreciates ahead of U.K.’s Interest Rate Decision and hovers around $1.3300 mark.
- Today pair made intraday high at $1.3302 and low at $1.3241 mark.
- A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
- A sustained close above $1.3315 on H1 chart will check key resistances.
- Alternatively, a consistent close below $1.3232 will check further supports.
Take a look and do trade wisely!