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Forex: GBPUSD Rose to 1.4660 in Europe Before BOE MPC Monetary Policy Statement

Posted by Chris Advincula on Feb 4, 2016 6:49:20 AM

The pound rose in Europe with a steady rise from the low of 1.4560 where it began to the high of 1.4665 (+105 pips) as the U.S. dollar fell across the board on concerns of a slowing U.S. economy and with expectations that the Fed will refrain from raising interest rates in their next meeting in March. The 1.4660 level has been met with much profit taking and took the rate lower to 1.4580 just before the results of the "Super Thursday" monetary policy decision. 

The Bank of England will release: Inflation Report, MPC official bank rate votes, Monetary Policy statement, the Official Bank Rate. The results will be announced at 12:00 GMT. In the recent months, the market has gone a long way in pricing a rate cut (ie: 35%) while on the contrary, the BOE MPC majority is biased toward the next rate increase as per a few analysts. 

The last speech of BOE Governor Carney has presented a case and framework for maintaining a steady policy. However, the tone of his speech contained some bias to a possible hike. He reiterated the importance of a) above trend growth, b) core inflation activity c: and the volatility of cost pressures that would allow inflation. The market awaits the BOE MPC announcement...



Topics: GBPUSD, US Dollar, Forex, BOE, European forex session, MPC


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