The next UK monetary policy will be announced at the 21st. June 2018. it remains us staying bullish on the Sterling for now. However, we will keep cautious as the UK Government has regained control over the Brexit negotiations. The latter my put a weight on the GBP in the week to come causing a downside potential.
We expect that the Bank of England will leave the interest rate untouched in the coming monetary policy announcement. Thus, the market will look for future clues in the following press-release. Central bank Governor Carney may also give his opinion about the second-quarter GDP. Recent data for the Q2 UK GDP is likely to reveal a slower growth in UK for this period. Thus, it leaves us in dovish outlook for the Sterling in the period to come.
Super Thursday – Forex Trading Market Entries
A US Dollar momentum was reached in the previous week. This comes in the wake of the FED hawkish monetary policy announcement as well as interest rate decision. it might therefore be a good option to enter a long market position on the GBP/USD currency pair. The ECB inspired sell-off in the week that passed might also reveal an interesting market entry for the EUR/GBP. This is why we keep that currency pair under the radar as well. However, we would recommend to focus on a bullish setup for the GBP/USD currency pair.
Global macro-economic events plays a major role and might cause the general market trends to change. The UK monetary policy announcement is an important factor for the Sterling volatility. Fundamental market events is therefore important in Forex trading because it can even change the global market trends. The UK monetary policy statement tends to create volatility for the Sterling dependent of the nature of the news. This should in any case be enjoyable times for any Forex trader involved in trading the GBP.