Bank of England may pause rate hike after recent sluggish economic data, short GBP/USD?
Odds of a rate hike at the BOE’s meeting have slumped close to 10% from around 90% in late-March amid signs of a slowing economy and after Carney warned that a hike in May was far from certain.
- Immediate market reaction will be determined by whether the Bank of England delivers a hawkish hold or whether it is starting to show signs that it shares more pessimistic outlook for the economy. If it’s the latter, GBP/USD may drop towards 1.3420.
- Data shows that UK Retail sales plunged 4.2% from a year earlier, which was the sharpest declines since the survey began in 1995.
- Central bank will probably leave its 2019 and 2020 growth forecasts broadly unchanged which means rate hike cycle isn’t over yet
Fullerton Markets Research Team
Your Committed Trading Partner
