The US dollar finally gained some support after a flash risk-off flow. The recovery in the Equities and Cryptocurrencies weakened the demand for safe-haven assets, causing the Gold to plunge to a sessions low of $1,311. Investors will be monitoring today’s high impact economic events from the UK and US.
Economic Events Watch List
Typically, the market exhibits thin trading volume and volatility ahead of big economic events. Today should be no different investors wait for the UK monetary policy and MPC Official Bank Rate Votes.
Great Britain Pound – GBP
Bank of England’s Monetary Policy Decision – At 12:00 (GMT), the Official Bank Rate rate will be monitored. Honestly, the chances of a change in rate are almost 0%. The BOE is expected to keep the rate on hold at 0.50%.
BOE Inflation Report – Although the BOE isn’t expected to change the rate, the meeting could still be an important one as the Bank will also declare its quarterly inflation report. This will be accompanied by a press conference with Mark Carney, the BOE Governor.
MPC Official Bank Votes – The BOE MPC meeting minutes include the interest rate vote for all MPC member during the most recent meeting. The division of votes presents an insight into which members are shifting their stance on interest rates and how likely the committee is to determine a rate change in the future. For the moment, the votes are 0-0-9. This means that all the members are expected to vote to hold the rate.
But, in case you see any change in voting figures, it will be surprising enough to shake the market up to 100 pips.
US Dollar – USD
Unemployment Claims – At 13:30 (GMT), the US Department of Labor will release the jobless claims data. This shows the number of individuals who filed for unemployment insurance for the first time during the past week.
The higher the number of people filing claims, the worse the economic labor market conditions are. The dollar typically gets weaker over a higher number jobless claims.
Summing up, it’s a good idea to trade the Sterling pairs today. Especially, if you see any change in voting or inflation outlook. Stay tuned for more Forex Trading Signals and have a pleasant day!