March 22 - Top Economic Events - BOE Preview - Forex News by FX Leaders

March 22 – Top Economic Events – BOE Preview

Posted Thursday, March 22, 2018 by
Rowan Crosby • 1 min read

It’s another day and another central bank interest rate decision that falls into focus. Unlike the FED who raised official interest rates by 0.25%, we might not have the same impact out of the UK today. But there are rumours of a surprise hike.

Major Economic Events To Watch Today

EUR – German Manufacturing PMI and Ifo Business Climate

This is a good indicator of business conditions in Germany, who are the major economic power in Europe.

GBP – Retail Sales

While it’s probably too late to impact the BOE in any meaningful way, a good number might help a future rate hike.

GBP – BOE Interest Rate Decision

The official line is that rates will be left unchanged at 0.50%.

BOE Preview: Is There a Surprise on the Cards?

There has been some talk about suggesting that a surprise hike could be on the cards. While unlikely it is something that has happened in the past. The element of surprise is often one of the key tools central banks can use to drive their agenda.

Markets have priced the chance of a rate hike in May at 66%, so the probability is that we will have to wait until then for any real action. Strong wage growth was the reason there is speculation that it might come sooner rather than later.

Keep a close eye out for the official vote count released with the statement. If we see a unanimous decision, then the GBP might be flat. However, if the vote comes in with 1-2 in favour of a hike, then we might see some volatility throughout the session. That is of course unless we get the surprise hike after all.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of