7:00am (NY Time) UK Interest Rate Decision Forecast 0.50% Previous 0.50%
ACTION: GBP/USD N/A
BOE is scheduled to release its interest rate decision once again today, and it is expected that Bank of England will keep the current rate 0.50%. But ever since the last rate decision and surprise increase in the APF by 50 billion pound, Sterling has been trading under substantial pressure.
One interesting observation is the MPC meeting minutes of the last rate decision meeting, which came out at 6-3, with the majority voting for an increase in the APF by 50 Billion Pound, and 3 dissenters including Governor King, voting for a 75 Billion Pound APF increasse. If we do get an additional announcement on more increase in the AFP, we could see Sterling retest recent support areas.
However, if BOE leaves rate unchanged and its Quantitative Easing program at the current rate, market could take this as a sign of stabilization and possible start to BUY sterling as a result. Some pre-release market movement could be confusing as argument for both bulls and bears are equally convincing. The safer course of action may be to wait after the release then follow the general sentiment.
As usual, I’ll be trading this news live and post the results back here. If everything is as expected, we could see very little market reaction, and therefore it could be a no trade.
[flv:http://www.newsprofiteer.com/091009-boerate/091009-boerate.mp4 480 360]
UPDATE: BOE decided to keep everything unchanged and market reacted with optimism and risk appetite. As I quickly assessed the market and decided to wait for a proper retracement, I guided the room for at least 20 pips of profit to 50 pips off on this trade LIVE. Watch how I evaluate the market as we pick up pips with relatively little to no drawdowns…
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Hello! I have a small problem , I can’t log on to tradethenews.com site, I ave tried to log on using different browsers but can’t connect to the server. do you know anyway around this prob?
Wole:
It works fine with me… you need a subscription to get the news feed…
Hi henry i was trying to make a payment for your traderoom but my account now is dissable what can i do thanks.
Eduardo:
Please contact kc [at] newsprofiteer [dot] com for all support issues. I am sure he will be more than happy to help you out.
Hi Henry,
You are simply a good man. I’ve never enjoyed trading until I stumbled on your site.
Good job.
Please when is trading room kicking up?
Thanks.
when is the propose chatroom starting are we going to get the it on our newsletter when it out. love to join
Alex: Can’t tell you something I don’t know yet, but I think we should launch it this month… thanks!
Bugger, I checked the progress on GBP/USD after the rate decision yesturday and found if I hung onto my trade I could have made a possible not 11 but 180 pips.
Oh well.
The numbers came out and GBP/USD rushed north up for a high of 65 pips in a few minutes before settling around 1.6560 mark. I got in after 12 min at 551 for profit of just 11 pips (1.6562). I had to get to bed (9:40pm OZ time) as I have to get up early in morning for work…Damn it all!!!
Still I suppose profit is profit I was happy.
Cheers Henry