7:00am (NY Time) UK Interest Rate Decision Forecast 0.50% Previous 0.50%
BOE is scheduled to release its interest rate decision today, it is expected that the Bank of England will keep the current rate unchanged at 0.50%. However, there are concerns of possible ending of BOE’s Quantitative Easing policy, or at very least a gradual unwinding of this policy. If this were to be confirmed with the accompanied rate statement, we could see some renewed demand for Sterling as it is an extremely bullish sign for the currency.
BOE decided to leave rates unchanged but increased their Quantitative Easing program by another 50 Billion. Market took that as a sign of Sterling weakness as both GBP/USD and GBP/JPY dropped over 150 pips in less than 2 minutes. I waited for the retracement then got into a SELL trade and picked up 20+ pips on video… Then upon examining market reaction, there aren’t really enough momentum to push this currency lower, so I entered a buy trade at the bottom and picked up an easy 60 pips.