GBP remains in focus as Bank of England announcement approaches…
The pound had another tough day on Wednesday, failing to hold its ground and slipping further against its major counterparts. Tension remains high as PM Johnson’s vow for no extension to the transition period has created discomfort among many senior EU officials. The $1.30 support level now comes into play ahead of what should be another interesting day of trading for the Great British Pound.
The Bank of England will make an announcement on monetary policy at lunchtime. No change in policy is expected with interest rates remaining steady at 0.75%. However, judging by the recent deterioration in economic outlook – weaker manufacturing/services sector and inflation running well below their 2% target (1.5%), it’s very likely the Bank opt for a dovish stance. They may even signal a bias to ease policy in 2020 with interest rates being lowered back down to 0.50%. Today’s decision arrives at midday with the meeting minutes and voting split all being released simultaneously.
Before this decision UK retail sales will be crossing news wires at 0930. Throughout the trading day there’ll also be a number of data releases from across the globe. US regional manufacturing gauges as well as jobless claims and existing home sales, Canadian non-farm employment numbers and finally Japanese inflation data in the evening.
Written by Viv Savani. 8:36am, December 19th 2019
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.