When is the Bank of England interest rate decision and how could it affect GBP/USD? – by hareshmenghani BOE InterestRate Inflation GBPUSD Currencies
nth time since December to rein in soaring inflation. The broader consensus is that the UK central bank would raise benchmark interest rates by 50 bps. Meanwhile, UK Prime Minister Liz Truss announced an energy relief package for households and businesses, which could help slow inflation and sets the stage for a dovish pivot.
Analysts at Danske Bank offer a brief preview and explain: “We expect BoE to hike the Bank Rate by another 50 bps but acknowledge that it is a close call between 50 bps and 75 bps. We expect further 50 bps hikes in both November and December followed by 25 bps in February. Hence, we lift the end point of our projection to 3.25% . We expect fewer hikes than priced in markets as we emphasise the rising recession risk.
and writes: “The Relative Strength Index indicator on the four-hour chart stays well below 30, pointing to extremely oversold conditions in the pair. Unless the BoE delivers a hawkish surprise as mentioned above, however, market participants are likely to ignore the technical conditions for the time being.”
Eren also outlines important technical levels to trade the GBP/USD pair: “Interim support seems to have formed at 1.1220 before 1.1200 and 1.1100 . On the upside, initial resistance is located at 1.1250 ahead of 1.1300 and 1.1350 .”
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of England faces pivotal policy decision with pound at multi-decade lowsThe Bank of England is faced with a crucial choice as it navigates a plunging currency and the effects of a new government energy cost package that has changed the inflation outlook.
Read more »
Bank of England set for second hefty rate rise in a rowThe Bank of England looks set to raise interest rates by at least half a percentage point on Thursday in a bid to tame inflation that is just off a 40-year high, against a backdrop of a tumbling currency and a free-spending government.
Read more »
Digital bank FV Bank integrates USDC stablecoin for direct depositsCrypto-friendly digital bank FV Bank has integrated USD Coin to its U.S. dollar accounts, allowing customers to receive USDC and automatically convert it into fiat.
Read more »
FV Bank and Circle announce integration for USDC depositsFV Bank and Circle announced an integration enabling USDC deposits into customers' bank accounts.
Read more »
GBP/USD licks Fed-linked wounds at 37-year low under 1.1300, focus on BOE, RussiaGBP/USD bears take a breather at the fresh low since 1985, portrayed after Fed-inspired losses, as traders brace for the Bank of England’s (BOE) monet
Read more »
As $3,284 Permanent Fund dividends hit bank accounts across Alaska, economists predict widespread impactsExperts say there haven’t been many studies on how the PFD — which hit Alaskans' bank accounts this week — is spent. But they said the impacts of this year’s overall $2.1 billion injection into the economy will be felt widely.
Read more »