U.K. Official Bank Rate Decision
U.K. will publish key interest rate around 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.
Markets expect no changes in the Monetary Policy as well as Interest Rate too. In addition Brexit deadline is also having only 2 week time line only. Last month, the BoE said it was “Ready to take whatever additional action is necessary to achieve its remit”. For now, with a Brexit deal still having hope and COVID-19 vaccines being successfully administered in U.K., the MPC is likely to be relatively calm about the outlook.
Let’s see how GBP has reacted during the previous data release:
GBP/USD: The sterling continues to trade higher ahead of U.K.’s interest rate decision. This is the highest level since May 2018. Today pair made intraday high at $1.3586 and low at $1.3490 mark. A sustained close above $1.3507 will drag the parity up towards $1.3555, $1.3586, $1.3612, $1.3632, $1.3667 and $1.3722 mark respectively. Key support levels are seen at $1.3490, $1.3430, $1.3375, $1.3322, $1.3290, $1.3263, $1.3222 and $1.3170 marks respectively.
Take a look and do trade wisely!