The BOE is up today!
What are traders expecting and can we find an opportunity from Guppy’s chart?
You gotta know all about the previous sessions’ catalysts if you’re planning on trading the pound in the next few hours!
- Fed vows to buy bonds until it sees ‘substantial’ economic progress
- A no-surprise no-change from the Fed, zero rates projected through 2023
- New Zealand economy surges out of recession in V-shaped recovery
- Australia jobs jump as Victoria opening sparks hiring surge
- Bitcoin tops $22,000 and strategists say rally has further to go
- Tokyo raises healthcare alert to the highest level after virus cases soar to 822
- Stocks loiter at record highs, waiting for Congress; oil jumps
- Australia, NZ dollars hit fresh highs as economies outperform
Upcoming Potential Catalysts on the Economic Calendar:
- Switzerland’s trade balance at 7:00 am GMT
- SNB’s policy statement at 8:30 am GMT
- BOE’s policy statement at 12:00 pm GMT
- Canada’s ADP non-farm employment change at 1:30 pm GMT
- U.S. Philly Fed manufacturing index at 1:30 pm GMT
What to Watch: GBP/JPY
GBP/JPY is a few pips away from the 140.25 minor psychological level that has been serving as range resistance since mid-November.
Today’s Bank of England (BOE) event will tell us if the bears can hold the level for another day or if the bulls can find enough momentum to force an upside breakout.BOE Governor Bailey and his gang aren’t likely to make policy changes ahead of any Brexit deal. We could see some dovish notes, though, which may be enough to inspire increased volatility among major pound pairs.
Pound bulls can look forward to continued risk appetite in the markets. And, if the BOE doesn’t share more concerns than they had in their last statement, then GBP/JPY could break all the way to the 142.50 previous highs.
Meanwhile, Guppy bears will have to watch closely in case the central bank shares red flags about the lack of a Brexit deal.
More Brexit concerns or a lack of progress on the U.S. stimulus talks could inspire profit-taking and drag GBP/JPY back to its 138.90 mid-range or 137.50 range support levels.