Sterling, Brexit and the Bank of England:
- Bank of England will policy unchanged, QIR may highlight weakening price pressures.
- Brexit clock ticking, and nothing has changed.
See how our Q1 Trading Forecasts for GBP can help you when trading.
Sterling Stable Ahead of BoE and QIR
The British Pound is little changed at the start of the week as investors wait for the latest central bank meeting and the Quarterly Inflation Report (QIR). All policy measures will be left untouched and the QIR is expected to show price pressures weakening, despite a strong jobs/wages market. Bank of England governor Carney will still try and outline how the central bank will react in various Brexit scenarios and he may hint at policy tightening measures IF Brexit is resolved.
Live Data Coverage: Bank of England Rate Decision Webinar Link.
Resolving Brexit remains unlikely as we stand but there is talk that the EU may offer some kind of guarantee over the Irish border that would help UK PM May sell her plan to Parliament. As always, nothing is set in stone and recent talk may just be commentators pushing the boundaries. Sterling remains stuck in a tight trading range and unless PMI readings on Tuesday are dire, or if No Deal Brexit reappears, the British Pound will remain in thrall to UK-EU negotiations.
Sterling (GBP) Weekly Technical Outlook: Chart Levels Remain Intact.
Retail traders remain net-short of GBPUSD -47.8% - according to the IG Retail Sentiment Indicator. See what this means and how it can help you make better informed trading decisions.
GBPUSD Daily Price Chart (March 2018 - February 4, 2019)
Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
What is your view on GBPUSD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.
