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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

GBP Pairs Trend Strength Analysis from MarketMilk
GBP Pairs Trend Strength Analysis from MarketMilk
  • 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
GBP Forex Pairs RSI from MarketMilk
GBP Forex Pairs RSI from MarketMilk

Missed last week’s price action? Read GBP’s price recap for July 27-31!