Gtag:

Sterling Depreciates Sharply Ahead of BoE’s Policy Rate Decision, 70+ PIP Volatility Likely; May 05, 2022

BoE U.K. Interest Rate Decision

Today U.K. has scheduled to release Interest Rate Decision at 1100 GMT/1630 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. Monetary Policy Summary discusses the economic outlook and offers clues on the outcome of future votes.

In today’s meet, traders anticipate 25bp hike to 1.00 pct vs 0.75 pct previous release. In addition, U.K. is facing highest inflation in last 30 years to 7.00 pct in March. On the other side, Food and energy prices are continued to rise in U.K. If BoE rises interest rate today as per expectations then it will be the forth hike in row. BoE is too facing the same issue of reining in inflation without stomping out growth. During last meet BoE Gov Bailey indicated that the Bank may look to take a more incremental approach to tightening, rather than following the U.S. Federal Reserve with a 50 basis point hike. As we know that the BoE has began unwinding its balance sheet in February, passively reducing the record £875 billion of U.K. gilts held at the start of the year. Traders expect that BoE could begin active gilt sales when the bank rate reaches 1%.

Let’s wait for the BoE’s Monetary Policy Summary for the further guidance and check it out how GBP has reacted during the previous data release:

March 17:

Feb 03:

Technical View:

GBP/USD:

  • The sterling starts a new day on a lower note ahead of BOE’s Interest Rate Decision and hovers around $1.2520 mark.
  • Today pair made intraday high at $1.2634 and low at $1.2517 mark
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1.2580 on H1 chart will check key resistances.
  • Alternatively, a consistent close below $1.2510 will check further supports.
SUPPORTS RESISTANCES
$1.2510 $1.2580
$1.2480 $1.2602
$1.2455 $1.2630
$1.2412 $1.2662
$1.2378 $1.2697

 

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

Headquarter

Suite 305, Griffith Corporate Centre, Beachmont, P.O. Box 1510, Kingstown, Saint Vincent and 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 because 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.

TP Global FX Limited is registered and regulated by Vanuatu Finance Service Commission (VFSC) with a registration number 40409.

TP Global Limited is registered and regulated by FINANCIAL SERVICES COMMISSION (FSC) MAURITIUS with a registration number GB21026474

TP Global FX Limited is registered and regulated by Financial Services Commission, Mauritius with a registration number GB21026474

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.

mappin at-sign phone close