GBP/USD Key Event – BoE MPC vote (May 12, 14:00 GMT +3)
Soon, on the 23rd of June 2016, there will be a referendum in the UK about the possibility of quitting European Union (usually this referendum is called “Brexit”). That is why there are a lot of institutional investors who are still transferring their funds to other markets in order to avoid economic and political risks.
UK economic data is getting worser. Different PMI numbers are decreasing heavily and it has a negative impact on GDP growth.
..UK Construction PMI (April):
..UK Services PMI (April):
..what is more, 10-Year UK Treasuries were sold at 1.66%, which is 10% higher compared to the previous auction:
On May 12, 2016 representatives of Bank of England will held a meeting and a possibility of rate change will be discussed. It is expected that it will remain unchanged, but market participants will consider the amount of representatives who voted for the rate hike / cut or for the rate to remain unchanged. If there is someone who will vote for the rate cut – it is have a negative impact on the value of GBP and vice versa.
But before that UK Trade Balance data will be published (May 10th 2016 at 11:30 GMT +3):
..and Industrial Production data (May 11th 2016, 11:30 GMT +3):
Most likely these reports will have an impact on the decision of the representatives of Bank of England.
GBPUSD chart:
Unlike EURUSD, there is a downward trend on GBPUSD D1 chart at the moment regarding the “Commodity Channel Index” indicator at the moment. Due to political factors most likely this trend will be continued.
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