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    Global macro overview for 16/06/2016

    Global macro overview for 16/06/2016:

    The main event of the day is the BOE's interest rate decision and asset purchase facility decision that are scheduled for release at 11:00am GMT today. The current interest rate is at the level of 0,50%. Market participants does not expect any changes. Moreover, the asset purchase should remain at the same level as well, 375bln/month. No change is expected in official bank rate votes, so the pattern of 0-0-9 from the previous meeting should be continued today. More clues regarding further monetary policy might come from BOE Governor Mark Carney speech later on at 08:00pm GMT. In conclusion, the Bank of England should behave just as the Fed did yesterday, and no change in the policy ahead of a possible Brexit is expected.

    Let's now take a look at the EUR/GBP technical picture in daily time frame. Bulls managed to retrace 78% of the recent swing low and they were capped at the level of 0.7995. Moreover, the market is still trading above the 55, 100, and 200 DMA, so bulls are clearly in control over this market again. The next resistance is seen at the level of 0.8110 and a break out higher is expected.


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