In today’s BOE (Bank of England) meeting, interest rates are expected to remain unchanged. However, depending on the statement, there is a high risk of the pound moving lower.
After this morning’s Federal Open Market Committee (FOMC) meeting, the pound rose to 1.3726 right after the announcement. Later, as hopes for large US rate cuts faded and the dollar was bought, the pound fell to 1.3620. On the daily candlestick chart, the pound formed a long upper shadow, which may suggest a short-term top.
For today’s BOE meeting, the policy rate is expected to stay at 4.0%. Yesterday’s UK August CPI was in line with forecasts, so inflation risks are considered under control. Some expect inflation to rise to above 4% in September.
At the August meeting, 5 out of 9 members supported keeping rates unchanged, but a rate cut was decided. With concerns about the economy, it is possible that more members will support a cut this time.
Since the pound may already have reached a peak, it is likely to move lower after the BOE meeting.
GBP/USD forecast range: 1.3580 – 1.3680 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.