The highlight of this week’s trading session arrives on Thursday with the Bank of England’s latest announcement on monetary policy. Last week’s price action was dominated by the idea of the Federal Reserve increasing interest rates and tapering its quantitative easing program earlier than forecast. The focus is now on the UK central bank and whether they follow suit.
No major changes are expected from the BoE but it will be the accompanying statement, with its detailed insight, that participants will be keen to understand. The economic recovery in the UK has been robust and inflation is on the rise. It’s chief economist, Andy Haldane’s last meeting/announcement with the Bank, there’s no doubt he’ll aim to promote a more hawkish outlook.
The greenback made solid gains last week after the Fed announcement. As a result, the buck will be closely monitored this week. After a considerable period of weakness, many investors will be watching to see whether this could be a turning point. The odds are certainly against it; however, in the current climate, nothing can be ruled out.
Have a good week.
Written by Viv Savani. 8:36am, June 21st 2021
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