News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Low
High
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
Gold
Bullish
Low
High
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
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
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
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/Gi8LHCT5sB
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/FFmRYyx4ou
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/r7aJb4qpqc
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/fIGDaDW21V
  • ...even more incredible is net speculative futures positioning in $EURUSD, rounding off from a record net long position...and it hasn't even cleared 1.20... https://t.co/SfyYTMTT1x
  • Net speculative futures positioning in the Dollar (here overlaid with the $DXY) has pushed to extreme levels commensurate to the levels in Oct 2017 and April 2018 https://t.co/JqHGgVUCqc
  • The $SPX closed below the 50-day moving average Friday. The first time it has done so in 103 trading days. The 'technical' end of an exceptional run: https://t.co/HUn5Q6JmlK
  • Despite recent weakness in the #SP500, the growth-linked New Zealand Dollar has been gaining momentum ahead of the #RBNZ next week Could this trend continue, or will $NZDUSD capitulate to the mercy of risk trends? Check out my fundamental outlook - https://www.dailyfx.com/forex/fundamental/forecast/weekly/nzd/2020/09/19/New-Zealand-Dollar-Outlook-NZDUSD-May-Rise-on-RBNZ-Watch-SP-500.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/34vcR4fjpT
  • RT @FxWestwater: #Copper rose to a fresh multi-year high as Chinese demand and supply-side issues continue to support price action amid a l…
Bank of England Rate Decision Preview - What Matters

Bank of England Rate Decision Preview - What Matters

2020-09-17 09:45:00
Justin McQueen, Analyst
Share:

Bank of England Monetary Policy Report Due 12:00BST

  • BoE to Reiterate Dovish Stance, However, Lack of New Policy Hint May See GBP Snapback Higher
  • Brexit Uncertainty Heightened, OIS Markets Bring Forward Negative Rate Pricing

Overview:

The Bank of England is expected to maintain its current monetary policy with the bank rate at 0.1% and APF at GBP 745bln.Today’s meeting is unlikely to provide much in the way of surprises given that there will be no press conference or forecasts alongside having enough capacity in the current QE program. That said, in light of rising concerns over a possible second wave of COVID cases and a sizeable market repricing in no-deal Brexit risks. The Bank of England is likely to tilt towards the dovish side, however, with market pricing very much on the dovish side, inaction can leave room for disappointment. That said, one way the BoE could hint at taking action sooner rather than later is via dovish dissenters in a vote split.

Starts in:
Live now:
May 05
( 12:05 GMT )
Join DailyFX For the Live Bank of England Webinar
Equity Markets
Register for webinar
Join now
Webinar has ended

No Need to Address QE Now as BoE Have Plenty of Capacity

Bank of England Rate Decision Preview - What Matters

Brexit Uncertainty Heightened as EU-UK Trade Talks Follow the 2019 Brexit Playbook

EU-UK Trade Negotiations: Political uncertainty and the repricing of no-deal Brexit risks have been heightened in recent sessions. This has come amid the UK looking to pass the Internal Market Bill (IMB) through parliament in the coming weeks, which in turn has led to trust between the UK and EU arguably hitting an all-time low in this Brexit saga with the EU giving the UK an ultimatum. Either withdraw the bill by the end of the month or face possible legal action if not. However, while the odds of a no-deal Brexit have increased notably, current negotiations continue to follow the 2019 Brexit playbook with political intervention likely to take place in order to get a deal across the finishing line.

Key MPC Commentary: Bank of England Officials Signal Scope for QE Expansion at a Later Date

Bank of England Rate Decision Preview - What MattersBank of England Rate Decision Preview - What Matters

Source: BoE, Refinitiv

Market Reaction

While a more dovish leaning Bank of England has the potential to pressure the Pound, given that OIS markets shifted towards this viewpoint, the risk of disappointment has been heightened. As such, lack of fresh hints to ease further could see a snapback higher in the Pound. That said, the BoE meeting is unlikely to provide much in the way of volatility with external factors (Brexit, Risk Environment) playing a larger role for the currency. As it stands, GBP/USD ATM overnight implied vols at 13.35 suggests an implied move of +/- 0.55% with implied range of 1.2850-1.3000.

Bank of England Rate Decision Preview - What Matters

Source: Refinitiv, DailyFX

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

DISCLOSURES