GBP Weekly Forecast (Jan. 27 – 31)

Will last week’s set of upbeat data be enough to keep the BOE on hold this week? Here’s what’s expected for the top-tier event.

BOE monetary policy decision (Jan. 30, 12:00 pm GMT)

• No actual changes to interest rates at 0.75% or asset purchases expected
• MPC minutes to indicate that two members dissented and voted to cut
• Recent jobs data has been strong but CPI and retail sales have disappointed
• Updated BOE Monetary Policy Report also due, featuring estimates for growth and inflation for the next two years
• Last monetary policy decision headed by Governor Carney before he is replaced by Andrew Bailey

Technical snapshot

• Stochastic paints a mixed picture for GBP pairs, with sterling oversold against the Aussie and the euro.

• The short-term trend strength analysis tool, however, reveals that most pairs are in bullish territory.

Missed last week’s price action? Read GBP’s price recap for January 20 – 24!