Will the Bank of England’s policy rate match market expectations of 1.75%?
04.08.2022
- UK: BOE Policy Rate and Statement Announcement
- Mester (U.S.): Remarks by the President of the Cleveland Federal Reserve Bank
U.S. currencies rose yesterday as buying interest emerged following the release of the strong U.S. July ISM Non-Manufacturing Index, which came in at 56.7. The Canadian dollar, which is highly correlated with the U.S. dollar, also rose.The CAD/JPY pair rose by as much as 170 pips, climbing from 102.884 to 104.576. The pair has been undergoing a corrective decline just short of the 200 EMA on the 4-hour chart; we will be watching to see if it rebounds at the 20 MA level of 103.675 and returns to an upward trend.
Ahead of today’s Bank of England (BOE) policy rate announcement, the European currency market is adopting a wait-and-see stance regarding the pound’s movements, and the GBP/JPY pair is consolidating around 162.560. Although the pair rebounded by about 180 pips yesterday, we will be closely monitoring today’s policy rate announcement, scheduled for 8:00 p.m., to see if this rebound will continue.
Today, German manufacturing orders will be released at 15:00 during Asian trading hours, followed by the ECB Monthly Report at 17:00 during European trading hours, the UK Construction PMI at 17:30, the Bank of England’s policy rate decision and statement at 20:00, and a press conference by Bank of England Governor Bailey at 20:30.ECB Monthly Report, at 17:30 UK Construction PMI, at 20:00 the Bank of England’s policy rate decision and statement, at 20:30 a press conference by Bank of England Governor Bailey, at 21:30 US time Canadian trade balance and housing starts,U.S. initial jobless claims, and U.S. trade balance at 21:30 U.S. time; U.S. weekly natural gas inventories at 23:30; and remarks by U.S. Federal Reserve Bank of Cleveland President Mester at 25:00. We’ll be watching closely to see if the UK policy rate comes in at the market forecast of 1.75%.
Author: Keisuke Sakurai
