Live Coverage: Investors anxious of surprises from the Bank of England, Super Thursday to shake Sterling

Yohay Elam FXStreet

Will the Bank of England cut rates? Markets are unsure about the decision and accompanying messages, which means high volatility for the Pound and other currencies—live coverage.

Join FXStreet Premium to ask our analysts questions live, leverage actionable analysis and get Gold and signal alerts.

Why this Bank of England decision is highly volatile

Officials at the Bank of England (BoE) have been silent in recent months, refraining from talking in order not to influence the elections. That put investors in the dark. Bond markets price a roughly 60% chance of a rate cut, a response to falling inflation and a cooling British labor market. However, nothing is certain.

BoE Governor Andrew Bailey and his colleagues may accompany their decision with hawkish commentary, pushing back against market expectations for further cuts. That would cause a whipsaw in GBP/USD and other Sterling crosses.

If only a small majority in the nine-strong committee back a rate cut, the Pound could bounce.

The "Old Lady" also releases its quarterly Monetary Policy Report (MPR) which includes inflation and growth forecasts.

Live financial market coverage

FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and, for Premium members, the ability to ask our experts questions in real time.

FXStreet Premium

FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans, and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro clings to the bid bias above 1.1500

EUR/USD has picked up pace, reversing Monday’s decline and advancing past the 1.1500 barrier on Tuesday. In the meantime, hopes for a diplomatic solution to the Middle East crisis keep the US Dollar under modest downside pressure, helping spot in its recovery.

USD/INR: Indian Rupee sits at monthly highs below 95.00 after RBI's neutral hold

Indian Rupee is hanging close to its highest level in a month just above the 95.00 level against the US Dollar on Wednesday, holding gains after the Reserve Bank of India (RBI) held the Repo Rate at 5.25%, as expected, maintaining a neutral stance amid still-modest inflation.

Why the WTI sell-off may be hiding a supply warning

Prices for the barrel of the American Oil benchmark have fallen sharply as hopes of a US-Iran agreement have resurfaced, but a deeply backwardated Oil curve, tight Cushing stocks and light speculative positioning all warn that the sell-off may have gone too far.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.