UK BOE Interest Rate | December 14, 2016 | Currency News

Event Details At-A-Glance:
0.50%0.50%0.50%0.25%

UK BOE Interest Rate Decision will be the main focus of Sterling traders, even though the central bank is not expected to hike rates yet again this year, the statement and vote count could say plenty about the direction of BOE’s current monetary policy, and perhaps provide a glimpse into the next rate change; therefore, although this is not as tradable, we should still pay close attention to it.

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7:00 am (NY Time) UK BOE Interest Rate Forecast 0.50% Previous 0.50%
7:00 am (NY Time) 
APT (Asset Purchasing Target) Forecast 435B Previous 435B
DEVIATION: (0.25%  BUY 0.75% /  SELL 0.25%)
7:00 am (NY Time) UK Votes Rate (0-0-9), APT (0-0-9)

The Trade Plan
In the extremely unlikely event BOE hike rate to 0.75%, we´ll buy  GBP immediately on a spike trade. Because of the level of this surprise, I think we´ll see a strong trend change for GBP in the next few weeks, so we should BUY and keep a small portion for larger gains… On the other hand, if we get a surprise unchanged decision on the Official Bank Rate, then we should see selling pressure in the GBP and similarly, the market will be selling GBP for weeks if BOE fails to convince it today.

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I´ll be trading this release using my Spike Trading Method, for more information read: http://www.currencynewstrading.com/how-to-get-started-with-news-trading/

I’d recommend using the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news… of course, you can also trade the default pair: GBPUSD.

 

 

   

Outlook Score
Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is the opposite.

Definition
(From Wikipedia) BOE Interest Rate, or the official bank rate (also called the Bank of England base rate or BOEBR) is the interest rate that the Bank of England charges Banks for secured overnight lending. It is the British Government’s key interest rate for enacting monetary policy. It is more analogous to the US discount rate than to the Federal funds rate. The security for the lending can be any of a list of eligible securities (commonly Gilts) and are transacted as overnight repurchase agreements. When an announcement of the change in interest rates is made this is the rate the Bank of England is changing. Changes are recommended by the Monetary Policy Committee and enacted by the Governor.

Thanks,




Currency Pair Stats
Pair2H50+2H50RangeDirectionPN30PN60PN90Spike
GBPCHF78.8%79.2%9297.5%27384736
GBPJPY78.8%79.2%9297.5%28425037
GBPUSD75.4%79.2%8697.5%22323834
EURGBP17.8%33.3%3797.5%10141714
2H-50+ = % of 50+ pips move in 2hrs. | 2H-50 = % of 50+ pips move in 2hrs. for the last 2 years | Range = average range in 2 hrs. | Direction = % match following news direction | PN30 / PN60 / PN90 = average pips move before news release in 30, 60, or 90 mins. period | Spike = initial average spike
About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

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