Market Brief 3 August: Interest Rate Decision from the U.K. to Influence the Pound
The major focus of the day will be on the pound and the U.S. dollar. There’ll be a lot of activity today and thus potential opportunities to capitalize on.
GBP 09:30 a.m. GMT +1, Services PMI (Jul) – expectations for the performance sector are for an increase in July at 53.6 vs. 53.4 for the previous period. If the actual news point to better results than those projected, this should be read as a positive sign for the pound. However, if the news are a lot weaker this should weaken the currency.
GBP 12:00 GMT +1 BoE Interest Rate Decision (August) – this is the news of the day for the British pound and the market is likely to react strongly within the first minutes of the news coming out. Projections are for no change, and the rate remaining at 0.25%. If the Central Bank decides to increase the rate, this should be read as a sign of confidence in the economy and thus a boosting factor for the value of the cable. If, on the other hand, there is an unexpected cut, this should drive the pound down.
GBP 12:30 GMT +1 Gov Carney Speaks – the head of the Central Bank of England will speak on the monetary policy of the country and comment on trends in the economy that have a direct impact on the interest rates in the country.
USD 15:00 p.m. ISM Non-Manufacturing PMI (Jul) – Projections are for a slight decrease in the services sector of the U.S. Analysts foresee a performance at 57.0 for the month of July vs. 57.4 for the previous month. If the report comes out lower than projections, this should devalue the U.S. dollar even more. And, if the news is better than expectations, this should be read as a positive sign for the currency.
Wishing you Happy and Successful Trading!
Risk Warning: The information above constitutes Marketing Communication and does not constitute Investment Advice or Investment Research. The content of the analysis represents the view of our experts on a generic basis, and do not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the analysis above has not been prepared in accordance with legal requirements designed to promote the independence of Investment Research. Readers using the above information should consider the possibility of encountering substantial losses. Therefore, UR Trade Fix Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the above analysis.” Further to the above ,Forex Trading involves a substantial Risk of Loss and may not be suitable for all Investors. Please see our Website for details regarding UR Trade Fix Limited’s Trading Terms, Policies and Offerings.Read more.