The spotlight of the day is the BoE policy meeting later in the day. Sterling is rising ahead of the meeting, whilst the EUR/USD pair challenged our recommended target.
BoE Policy Meeting in Focus
The key events today are the BoE policy meeting and the Markit PMIs from various countries. Sterling has been developing near a one-year high against the greenback and is moving higher against almost all the major counterparts. Before the Bank of England’s monetary policy announcement and the British pound strength, the investors are waiting for hawkishness from the central bank. In the previous BoE meeting, three policymakers shocked the market by voting 5-3 to keep rates unchanged.
The Bank of England will announce its policy meetings result at 11:00 GMT. They are expected to keep their interest rates at 0.25% and their asset purchase facility at £435B, while the voting pattern of the policy makers will attract attention from investors. The forecasts suggest that one policymaker who voted in the last meeting for a rate hike will return to the team voting to keep the rate unchanged. Together with the interest rate decision, the quarterly inflation report will be released and a half-hour later, BoE Governor Mark Carney will give a speech.
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