UK MPC Meeting Minutes Trading Plan 05/19/10

MPC Meeting Minutes is scheduled to be released today and since it is customary for BOE (Bank of England) not to release a statement along with its interest rate decision (2 weeks ago) where there were no changes in either rate decision and APF (Asset Purchasing Facility, UK’s quantitative easing program),  today will be the first time to actually get a glimpse into what actually took place during this meeting, here is the forecast:

4:30am NY Time UK MPC Meeting Minutes          Forecast 0-0-9     Previous 0-0-9
ACTION: GBP/USD           N/A

Once again, MPC or Monetary Policy Committee, from Bank of England (BOE) will be releasing their meeting minutes on the Rate Decision meeting along with the actual vote count over the rate decision and the Asset Purchasing Facility program.  If you recall, MPC once again left both intereste rate and APF unchanged.

We’ll have to pay more attention today and look for the vote count on both the rate decision and APF program.  If there are any dissenters in either vote, we could see market react to it immediately and we’ll analyze the vote and possibly jump into a trade.  Of course if we see anything short of unanimous vote on the APF issue, expect GBP to be soft; on the other hand, if we don’t get unanimous vote on the Official Bank Rate, then we might see some strength in the Sterling (as there might be members leaning towards hiking rates).

We’ll wait for the release and then see how the market reacts afterwards.  The focus will be on the actual vote count and if we do have dissenting votes, then market could move in a steady manner for the next few hours, giving us plenty of opportunity to cash in on the movement, therefore spike trading is really not necessary.

One observation over the current risk averse market condition is that traders are looking to SELL into any rally, therefore I’d recommend to use smaller profit targets on any LONG GBP trades.

Related posts:

1. UK MPC Meeting Minutes 08/19/09
2. BOE Interest Rate Decision – Forex News Trading Plan 11/04/10
3. Forex Trade Plan For BOE Interest Rate Decision 09/09/10
4. Forex News Trading UK BOE Interest Rate 09/08/11
5. Forex Trade Plan For Uk BOE Rate Decision 10/07/10
6. Forex Trade Plan For UK BOE Interest Rate Decision 12/09/10
7. Australia Monetary Policy Meeting Minutes 10/19/09
8. Forex Strategy Plan For UK BOE Interest Rate 08/04/11
9. BOE MPC Official Bank Rate Decision 10/08/09
10. Forex News Trading UK BOE Interest Rate Decision 06/909/11

Tagged as: Asset Purchases, Bank of England, bank of england monetary policy committee, BOE, British Pound, Exit Strategy, Financial Times, Forex, Forex News, Fundamental News, fundamental outlook, GBP, GBP/JPY, GBP/USD, Inflation, Interest rate, interest rate decision, JPY, Key Interest rate, Matter Of Fact, Meeting Minutes, Minutes, monetary policy, monetary policy committee, MPC, MPC Meeting Minutes, Paul Fisher, Posen, Profound Effect, Qe, UK, United Kingdom, Vote Count