The cable has been on the downward trend since the 17th April 18, it eventually reversed the past two months from yearly lows of 1.2382 because of good expectations for Brexit.
Is currently trading above the daily 200 EMA at 1.3070
Big movement for the pair we could expect it on Thursday when the BOE Inflation report and monetary policy will be released.
BOE is already preparing contingency plans for a no deal Brexit and expectations worldwide is that the cable will loose around 14% of its value with a no deal scenario.
Level to watch is the 200 EMA around 1.3070 if it crosses below that we can expected a significant downward trend.
Fundamentals:
In the UK, the focus will continue to be on Brexitnegotiations as PM Theresa May deals for concessions from the European Union. Another interesting event will be the Bank of England meeting.
“We do not expect the Bank of England to change its policy on Thursday. It is ‘Super Thursday’ so we also get an updated Inflation Report including updated projections.
It seems likely the growth and inflation paths will be revised down. A couple of weeks ago we changed our BoE call and now expect the next hike to arrive in November instead of May”, said Danske Bank analysts.
Is currently trading above the daily 200 EMA at 1.3070
Big movement for the pair we could expect it on Thursday when the BOE Inflation report and monetary policy will be released.
BOE is already preparing contingency plans for a no deal Brexit and expectations worldwide is that the cable will loose around 14% of its value with a no deal scenario.
Level to watch is the 200 EMA around 1.3070 if it crosses below that we can expected a significant downward trend.
Fundamentals:
In the UK, the focus will continue to be on Brexitnegotiations as PM Theresa May deals for concessions from the European Union. Another interesting event will be the Bank of England meeting.
“We do not expect the Bank of England to change its policy on Thursday. It is ‘Super Thursday’ so we also get an updated Inflation Report including updated projections.
It seems likely the growth and inflation paths will be revised down. A couple of weeks ago we changed our BoE call and now expect the next hike to arrive in November instead of May”, said Danske Bank analysts.