GBP/USD: With Fed decision out of the way, focus shifts to the BoE
Money markets no longer majority pricing in a rate cut.
GBP/USD Technical analysis, overview, strategies, and levels
With one central bank decision out of the way with the US Federal Reserve opting to keep monetary policy unchanged, the focus for this pair's price now shifts to the other one and seemingly of greater importance, that of the Bank of England (BoE) which will announce its monetary policy in what will be its governor Carney’s last. Here the situation gets trickier, as money markets have been previously majority pricing in a 0.25% rate cut out of the central bank, with those probabilities no longer in the majority prior to the event. Two members have been consistently voting to reduce rates, and it'll be a question of whether enough members will shift to form a majority.
IG client* and CoT sentiment for GBP/USD
Going into today's fundamental event retail traders are heavy long at 67%, while CoT (Commitment of Traders) bias as per last Friday's report is also majority long at a more moderate 62%.
GBP/USD Chart with retail and institutional sentiment
* The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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