British Pound Up Ahead of Bank of England Announcement - Neutral Stance Likely.The British pound made headway head·way n. 1. Forward movement or the rate of forward movement, especially of a ship. 2. Progress toward a goal. 3. The clear vertical space beneath a ceiling or archway; clearance. 4. against many of the majors on Wednesday Wednesday: see week. , as GBPJPY tested and then reversed from 140 once again. There was no UK data on hand, but the British pound will face event risk on Thursday from the Bank of England's (BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip ) latest rate decision. The BOE is anticipated to announce at 7:00 ET that they've left their Bank Rate unchanged at 0.50 percent, but this won't even be the market-moving part of the announcement. Instead, traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. will be looking toward the BOE's policy statement. This has consistently been the prime "news event" of recent rate decisions. Last month, the BOE indicated a neutral stance as they stated they would continue their [pounds sterling]175 billion quantitative easing Quantitative easing was a tool of monetary policy that the Bank of Japan used to fight deflation in the early 2000s. The BOJ had been maintaining short-term interest rates at close to their minimum attainable zero values since 1999. program, and this ultimately led the British pound to rally against the US dollar and euro immediately. A repeat of this statement is likely to trigger a similar reaction from the British pound, but on the other hand, any indication that the program may need to be expanded down the line would weigh very heavily on the currency. 2009 Al Bawaba (Albawaba.com) Provided by Syndigate.info an Albawaba.com company |
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