November 9, 2012
GBP/USD’s price action yesterday was as crazy as a loon! At first, the pair consolidated within a tight range. And then, just when the European trading session opened, the pair broke out to the downside and forged fresh 2-week lows. But that wasn’t the end of it! When the BOE announcement came, traders suddenly changed moods and decided to buy the pair up, allowing it to close near its opening level that day.
The Bank of England’s interest rate decision came in line with expectations. The central bank chose not to pump more cash into the economy and keep the rates unchanged at 0.50%.
Apparently, some members of the central bank are worried that inflation might get out of hand if they ease again. Nevertheless, a few economists are betting that the BOE will expand the asset purchase facility by another 50 billion GBP during the first quarter of 2013.
Today, the country’s trade balance will be the report to keep an eye out for. It’s scheduled to be published at 9:30 pm GMT and is expected to show a 9.1 billion GBP deficit. Last month, the deficit was at 9.8 billion GBP.
Last edited by PipDiddy; 11-08-2012 at 08:22 PM.
"The only cable I watch is the pound baby."