UK Weekly Webinar: GBP/USD, EUR/GBP and FTSE Eye BoE and Coronavirus Escalation
GBP/USD, EUR/GBP and FTSE Prices, Charts and Analysis:
- Bank of England (BoE) dictates Sterling’s short-term direction.
- FTSE 100 slammed by heightened coronavirus fears.
British Pound (GBP) On Hold as Rate Decision Nears
Sterling has enjoyed a small uplift Monday, but recent trading ranges are expected to hold ahead of the Bank of England rate decision on Thursday. Recent comments from various BoE members have increased the odds for a 0.25% rate cut this week but market expectations are currently for an unchanged decision. The MPC last voted 7-2 for unchanged rates but a move to 6-3 is now likely. A 5-4 call would weaken the British Pound, while a 0.25% rate cut would see GBP drop sharply. Support levels are near and should hold before Thursday, while resistance will also prove difficult to break before the announcement.
FTSE 100 Roiled by Risk-Off Move
Equity markets around the globe are covered in red as investors abandon riskier assets and move into safe-havens including gold, the Swiss Franc and the Japanese Yen. Equity markets have been trading at, or close to, multi-year highs and the risk-off move may have further to go. The driver of the move is the spread of the deadly coronavirus in China, while cases of humans infected are appearing around the globe. Further escalation may well start to hit global trade, rattling markets further.
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FTSE Daily Price Chart (August 2019 – January 27, 2020)
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