Thursday’s trading session is expected to be very volatile for GBPUSD; investors are focused on the meeting of the BoE and its Inflation Report.
The British Pound remains weak against the USD on Thursday. The current quote for the instrument is 1.2934.
Thursday’s trading session can be called the Bank of England Day, because the British regulator is the major newsmaker today. The regulator is going to have another meeting today and market expectations relating to the benchmark rate imply no changes as it is believed to remain at 0.75%, the same as before. At the same time, monetary policymakers are scheduled to vote on the Quantitative Easing volume. In fact, the program “ran out of steam” few years ago, but it is still operating on a pro forma basis. A little bit later, the BoE Governor Mark Carney will speak, while the regulator is going to publish the Monetary Policy Summary and the Inflation Report.
It may well be that Carney is going to speak about the Brexit complications and say that the talks proceed no matter what. Yesterday, S&P published an analytical note saying that chances for the United Kingdom and the European Union to agree on the “soft” Brexit scenario were very high even after the deadline. The Brexit date is March 29th, but no documents have been ready yet.
If the Bank of England focuses today on the Brexit complications, the inflation slowdown, and the business activity reduction, the Pound will get under additional pressure. However, if the regulator is rather neutral and speaks mostly about monetary issues, GBPUSD may continue trading near its current levels.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.