The European Central Bank (ECB) initiated its cutting cycle last week on June 6. Expectations are that ECB policymakers are in no hurry to follow this first cut with a second one.
Next week, we will see how much of a hurry the Bank of England (BOE) is to follow the ECB.
A Reuters poll of 65 economists indicates the BOE is likely to wait until August to cut interest rates. The consensus had previously settled on a cut on June 20, so bear that in mind when taking their forecasts into account.
UK inflation eased to 2.3% in April, close to the central bank's 2.0% target, from a peak of 11.1% in October 2022. So why wouldn't the BOE cut rates this month? Well, wage and services inflation, both watched closely by the BoE, are still around 6%. The question that arises is how much the BOE weighs inflation in this sub-section of the economy against overall inflation.
On the GBP/USD chart, after reaching a three-month high, buyers were unable to keep the pair above 1,2800 to challenge the year-to-date (YTD) high of 1.2894. The next support level is possibly 1.2700.
Next week, we will see how much of a hurry the Bank of England (BOE) is to follow the ECB.
A Reuters poll of 65 economists indicates the BOE is likely to wait until August to cut interest rates. The consensus had previously settled on a cut on June 20, so bear that in mind when taking their forecasts into account.
UK inflation eased to 2.3% in April, close to the central bank's 2.0% target, from a peak of 11.1% in October 2022. So why wouldn't the BOE cut rates this month? Well, wage and services inflation, both watched closely by the BoE, are still around 6%. The question that arises is how much the BOE weighs inflation in this sub-section of the economy against overall inflation.
On the GBP/USD chart, after reaching a three-month high, buyers were unable to keep the pair above 1,2800 to challenge the year-to-date (YTD) high of 1.2894. The next support level is possibly 1.2700.
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Free TradingView Premium:
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Investing in complex securities involves risk. You may lose some or all of your invested capital.
blackbull.com/en/platforms/tradingview/?utm_source=tradingview
Investing in complex securities involves risk. You may lose some or all of your invested capital.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.