LiteForex - Analytics


    842.00 7.50/10
    81% of positive reviews

    GBP/USD: markets are in anticipation of the interest rate decisions by the Bank of England on 04.02.2016

    Yesterday’s positive data on business activity index in the UK service sector (PMI) caused rapid decline in the USD in the markets (55.6 in January against the forecast of 55.3 and the value of 55.5 in December).

    Later last night, during the American session, PMI in the USA became known. The index in January was at the level of 53.2 versus the forecast of 53.7). This fact also contributed to the decline in the USA. US PMI has reached the lows since October 2013. Yesterday the pair GBP/USD rose to 3-week highs at the level of 1.4645.

    Today, at 14:00 (GMT 2) the Bank of England will announce its interest rate decision. At 14:45 (GMT 2) Mark Carney, the head of the Bank of England will make his comments. Last week, Mark Carney said that there were no conditions in the country for rising interest rates.

    Slowdown in inflation (amid the decline in the prices of oil and commodities and slow growth of GDP) makes possible that the interest rate in the UK will be raised only by the end of this year.

    Growing housing prices in the UK also prevents the rise in the interest rate. The index of the housing price in the UK has grown again ( 1.7% in January versus 2.0% in December and 9.7% per annum versus 9.5% in December).

    On Friday attention of the market participants will be focused on the US Non-Farm PayRolls, which will be released at 15:30, and show the state of the US labour market. It is expected that the number of new jobs outside agricultural sector will rise by 190 000. Positive data will support the USD.

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree