7:00am (NY Time) UK Offcial Bank Rate Decision Forecast 0.50% Previous 0.50%
ACTION: GBP/USD N/A
Bank of England’s Monetary Policy Committee (MPC) is scheduled to release its interest rate decision once again today, and consensus expectation is to keep rates at 0.50%, which is no surprise to most traders. However, the important focus today will be the APF (Asset Purchasing Facility, or Quantitative Easing, or their Stimulus Program) program, which is expected by analysts to be increased by a minimum of 25 billion Pound to a maximum of 75 billion Pound…
Since the third quarter UK Prelim GDP release came out as a disappointment few weeks ago, MPC has been under pressure to take action, and today’s rate decision is highly speculated that MPC will in fact increase their APF; therefore, if MPC decides not to increase the current stimulus and leaving it at 175 Billion Pound, we could see strength in the Sterling as pre-market condition has been pricing in for the possible increase (in AFP), and we’d look to BUY GBP/USD on this surprise unchanged verdict… However, if the opposite is true, then depending on the amount of increase, we should see weakness in the Sterling immediately after, and we should look for SELL Sterling trades.
As usual, I’ll be trading this news live and post the results back here.
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{ 4 comments… read them below or add one }
hi henry…thanks henry,your daily news alarts help me in many ways that i can not explain.
but i encounter some problems of late.before the US non farm release on friday i placed a sell stop order at 149.818,then during the spike my FXPRO BROKER moved it to 149.536, which is about 30pips from my initial position. And this gave me a psychological problem.that was not the first time i encounter such problem.
pls help me what should i do and which forex broker allows spike trading and pending order without shifting my position…
Kenneth:
Don’t put pending orders then. Almost every broker that I know will slip you. Just find a better way to trade, like I do.
Henry
The GBP appreciated when QE was extended. I’m afraid your prediction turned out to be wrong. Should have bought GBP instead.
Ice:
As I said, depending on the amount of increase, market is likely to react differently. At the time of the release, expectation for the APF has risen to 50 Billion of increase, therefore at 25 Billion, market actually thought BOE missed expectation, therefore a moderate bullish signal for the GBP. That’s why we need to get the latest data and put the context of the market into our trading. We didnt take a trade after the release in the trade room, but waited patiently for 35 pips in a different trade.
Henry