[GBPUSD] ...AWAITING BoE ANNOUNCEMENT

The most important event of today's session will be the BoE announcement about the decision on interest rates. The market would be surprised if interest rates were raised during this meeting ... we'll see !
Anyway, it will most likely be our next driver! Follow it!!

OUTLOOK BoE MEETING

The data were the last insight into the U.K.’s economic outlook before the BOE announces its interest-rate decision at noon in London, along with the Quarterly Inflation Report, on so-called Super Thursday.
The PMI figures were quite good, the labor numbers were actually interesting, the details were O.K. but not amazing. This is more just the market kind of patting itself on the back for the continued string of decent numbers coming out of the U.K. although we think those days are numbered.
While the PMI numbers will be forgotten once the Bank of England has its say, at the margin there’s some hope that this will at least give a more positive spin to what the MPC may say although they’ve already made their decision.

- GBP/USD climbs 0.2% to 1.3250 as of 10:36 a.m. in London, after touching 1.3267, the highest since Sept. 15
- Support at 1.3159-52, with resistance at 1.3248-60
- The BOE is expected to keep interest rates at record-low 0.25% after the U.K. economy slowed in the first half of 2017
- A 6-2 split to maintain current levels is seen as the most likely outcome by the vast majority of analysts.
- BOE will probably downgrade its forecast for 2017 growth
- The BOE’s “Super Thursday” today is unlikely to provide sterling with great support, given the central bank’s prudent view on the economy and a still steady outcome on rates in spite of the growing debate within the MPC.
- Markets don’t have a rate increase fully priced in for another year, while economists see no move until 2019
- Yield on 10-year gilt at 1.23% (Bloomberg Research)


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