We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The $USD may rise against the Malaysian Ringgit after Prime Minister Mahathir Mohamad resigned. Bank of Malaysia may cut rates on #coronavirus fears with fiscal stimulus uncertain. Get your market update from @ddubrovskyFX here: https://t.co/WSx7FEf6W6 https://t.co/byzavtwAo5
  • LIVE IN 30 MIN: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395
  • The British Pound, #Euro and Japanese #Yen rose versus the US Dollar. #Coronavirus fears sank stocks and increased #Fed rate cut bets. The $GBPUSD technical bias still points lower #USD - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/02/26/British-Pound-Euro-Yen-Gain-as-US-Dollar-Weakens-in-Tense-Session.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/qupkKdbHms
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/1:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTDaWVC https://t.co/BlxHOemKwy
  • China is "fully expected" to meet terms outlined in "Phase 1" of the US-China trade deal despite the outbreak of the #coronavirus according to top US officials (SCMP) - First Squawk Could you imagine the pandemonium if markets had to contend with #covid19 and reignited tensions?
  • The #coronavirus has revealed that these debt markets are more susceptible to economic shocks than imagined".
  • has alleviated the anxiety of a region-wide default. Consequently, investors have grown more comfortable with investing in riskier assets (both sovereign and corporate) while underwriting standards for the latter deteriorate.
  • History says otherwise, and the current fundamental context only supports the notion that the Southern member states are still comparatively more vulnerable than their northern counterparts. However, buoyant market optimism – buttressed by expectations of central bank easing -...
  • ...reputation of financial soundness – has collapsed and is approaching equivalency. The implicit message behind this convergence is investors are assuming that “all other things equal”, these states will be almost equally able to meet their debt obligations.
  • (IMPORTANT THREAD) "This came amid a regional convergence of interest rates on sovereign debt in Greece, Germany, Italy Portugal and Spain. What this means is the risk premium between owning Mediterranean debt – with a history economic precarity – and German bunds - with a... https://t.co/jVpQCZ7T89
BoE to Keep Interest Rates, Asset Purchase Target Unchanged in February

BoE to Keep Interest Rates, Asset Purchase Target Unchanged in February

2011-02-09 19:10:00
Michael Wright, Currency Analyst

Feb 10

Bank of England Interest Rate Decision (12:00 GMT)

Expectations: 0.50 Percent

Prior: 0.50 Percent

Fundamental Outlook

The Bank of England is widely expected to hold their key overnight lending rate and asset purchase target at 0.50 percent and 200 billion pounds respectively in the month of February. As of late, traders are pricing in a 16 percent chance that policy makers will hike rates twenty five basis points tomorrow, according to the Credit Suisse Overnight Index Swaps. As economic activity in the region is expected to come under pressure this year due to the government’s largest spending cuts since the Second World War, policy makers will likely refrain from raising borrowing costs. At the same time, the central bank is expected to keep its asset purchase program unchanged at 200 billion pounds as consumer prices remain stubbornly above the central bank’s target. Heading into the meeting, policy makers Martin Weale and Andrew Sentence will push for the base rate to rise to 0.75 percent, while Adam Posen votes to raise asset purchases.

All in all, currency traders may witness a lackluster performance in the British pound subsequent to the BoE rate decision if the central bank keeps borrowing costs and its asset purchase target unchanged as expected.

Technical Outlook

GBPUSD 1 Hour Chart

BoE_to_Keep_Interst_Rates_Asset_Purchase_Target_Unchanged_in_February_body_gbpusd1.png, BoE to Keep Interest Rates, Asset Purchase Target Unchanged in February

Charts Created Using FXCM’s Strategy Trader – Prepared by Michael Wright

GBPUSD: The pair remains bounded by its descending hourly channel that remained intact since February 3rd. As the technical indicators begin to paint a bullish picture, bears should caution entering into a short position ahead of the BoE rate decision. At the same time, it is worth noting that our speculative sentiment index stands at -1.63, providing the contrarian signal to remain long.

For More Technical Analysis Visit the DailyFX Technical Page

Written by Michael Wright, Currency Analyst

To Receive Future Articles by Email, please contact me at instructor@dailyfx.com

Michael Wright authors FX Headlines, Fundamentals vs. Technical’s, Intraday Trading, Weekly Spotlight, and Forex Trading Weekly Forecast

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.