Heads up, pound traders! The U.K. central bank is scheduled to announce their monetary policy decision this week.
Here’s what to expect.
BOE statement & MPC minutes (Aug. 6, 11:00 am GMT)
- Interest rates to be kept on hold at 0.10%
- Asset purchases to be maintained at 745 billion GBP
- Monetary policy committee likely to vote unanimously to keep policy unchanged
- Note that the central bank already decided to expand asset purchases by 200 billion GBP in the previous meeting
- Any indication that they’re open to further easing down the line could drag the U.K. currency down
- On the other hand, optimistic remarks could continue to lift GBP, especially since COVID-19 cases are falling and economic data has improved
Brexit updates
- Next round of trade talks to take place later in the month, but remarks from key officials on their strategy could also bring volatility for pound pairs
- The U.K. government is also negotiating with the U.S. and Japan on 39.5 billion GBP worth of trade, which could provide some reassurance for businesses
Technical snapshot
- Long-term trend strength analysis paints a mixed picture of GBP pairs once again
- Cable, Guppy, and GBP/CAD are giving off strong bullish vibes
- Meanwhile, GBP/CHF, GBP/AUD, and GBP/NZD are in the middle of a slowing bullish trend
- RSI puts most pairs in bearish territory, except for EUR/GBP, GBP/CHF, and GBP/AUD
Missed last week’s price action? Read GBP’s price recap for July 27-31!
