It’s showtime for the BoE in a highly anticipated rate decision meeting this week.
Rate cut probabilities has seen some significant jumps up and down over the past three weeks. After worse than expected economic data markets were 72% sure the of a rate cut by the BoE next week.
However, recent survey and sentiment-based indicators, as well as better than expected jobs numbers, pushed rate cut probabilities back to about 50%.
Market are very evenly balanced on whether the BoE will cut rates or leave them unchanged. This can provide us with a great opportunity to trade the Pound this week.
But, the details of the BoE statement will mean the difference between a great trade and a dangerous one.
This week ahead video will help you prepare for this week’s upcoming event and provide insights into how you could possibly trade it as well.
Highlights of the video:
00:41 – Baseline context for the GBP
03:33 – Baseline expectations for the upcoming risk event
06:45 – Possible sentiment shifts
11:12 – Possible currency pairs to consider