Partner Center Find a Broker

The BOE is up in a few hours!

Have you decided on a pair to trade yet? Check out GBP/JPY’s chart to see if you can take advantage of the setup!

But first, here are the headlines you missed if you weren’t around during the Asian session:

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • SNB’s policy statement and presser at 7:30 am GMT
  • ECB’s economic bulletin at 8:00 am GMT
  • Italy’s trade balance at 8:00 am GMT
  • BOE’s policy decision at 11:00 am GMT
  • Canada’s ADP non-farm employment change at 12:30 pm GMT

What to Watch: GBP/JPY

GBP/JPY 1-hour Forex Chart
GBP/JPY 1-hour Forex Chart

In a few hours, the Bank of England (BOE) will print its monetary policy decision for the month of June.

Word around is that Governor Bailey and his team will increase their asset purchases by 100B GBP, which will take their bond-buying program to a cool 734B GBP.

After last week’s big GDP miss, analysts will also look for signs of more aggressive stimulus policies. Negative interest rates take the top spot though BOE could also start targeting them yield curves like the BOJ does.

Meanwhile, GBP/JPY is testing the support of a 200-pip range on the 1-hour time frame.

If the BOE fires enough bullets to assure markets of its commitment to stimulus, then we could see GBP/JPY pop to its mid-range levels near 135.00 or even the 136.00 range resistance.

If Bailey and his team disappoint, however, or if they hint at negative interest rates in the foreseeable future, then GBP/JPY could break the 134.00 support and make its way to the 133.00 previous area of interest.