May 10 – Economic Events Outlook – “Super Thursday” for Sterling Pairs

Good morning, traders. It’s going to be an exciting day as the market is bracing to trade this Super Thursday.  The BOE’s monetary policy decision, official bank rate vote and inflation figures from the United States are coming up. Let’s discuss the potential outcomes…   

Watchlist – Key Economic Events Today

On this Super Thursday, the Bank of England will publish the monetary policy statement, Monetary Policy Committee (MPC) meeting minutes, and the inflation report at 11:00 (GMT). Moreover, the Office for National Statistics is due to release it’s manufacturing production.

In short, the economic calendar is full of very significant fundamentals from the United Kingdom. Consequently, all the Sterling pairs are ready to launch in either direction, depending on the various decisions. We will have to wait and see!

What is the Potential Impact on the Sterling?

Back in April, the Bank of England kept a hawkish tone by saying that rates will rise faster and earlier than expected. This caused bullish trends in the Sterling.  However, I’m not expecting any change in the interest rate (0.50%) today. There are some other factors that need our attention first.

The economic figures have been very disappointing. Inflation slipped from 2.7% to 2.5% and the GDP grew by only 0.1% q/q in Q1. Moreover, the PMI figures also point to an upcoming slowdown. Logically, the BOE should be keeping the rates on hold until the economic data is back on track.

MPC Official Bank Rate Votes – The vote will show MPC (Monetary Policy Committee) officials’ intentions. As of now, two members are in favor of hiking the rate according to the forecasted vote of 2-0-7. But, I think the vote has already been priced in. The market may not absorb any impact unless the voting decision changes. Let’s keep watch.

BOE Inflation Report is significant. It indicates where the BOE sees inflation in the following years. Based on this, speculators draw forecasts as to when the BOE will hike the interest rate. The market immediately starts pricing in this same sentiment.

U.S. Dollar – USD

CPI m/m – The Bureau of Labor Statistics will be releasing the consumer price index data at 12:30 (GMT). The U.S. inflation is expected to gain by 0.3% vs. -0.1% in April. Whereas, the Core CPI m/m is expected to gain by 0.2%.

Fellows, the market is likely to be uncertainly volatile today. I recommend reading up on FX Leaders Risk Management Strategies in order to secure your funds. Keep following us for the latest setups. Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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