Risk event for the week starting 18 September: EUR/GBP on BoE decision
UK inflation data, just before the rate decision, may steer the potential for a further two rises in the UK base lending rate.
Richard Snow, analyst at Daily FX, looks at the potential for further downside to the EUR/GBP trade, indicating the trade around a more hawkish Bank of England over the European Central Bank’s intentions.
The Bank of England
Jeremy Naylor speaks about some important things that will happen next week in the trading world. They focus on the Bank of England (BoE) deciding on their interest rates.
It's expected that there will be a small increase, but what's really important is the UK inflation data that will be released a day before the rate decision. If the inflation data shows that prices are going up more than expected, there might be another increase later in the year.
The EUR/GBP chart setup
He chats to Daily FX analyst, Richard Snow, about the EUR/GBP chart setup. It seems that there has been a drop in the pairing of these two currencies because the European Central Bank (ECB) has predicted some bad economic times.
They talk about some specific numbers to look out for in this pairing, like 0.8635 and 0.8565. If the inflation remains high, it might be a good time to sell and expect the numbers to drop even further to 0.8515.
Federal Open Market Committee
Richard also mentions that there will be a lot of change and unpredictability in the foreign exchange world next week because the Federal Open Market Committee (FOMC) will also be deciding on their interest rates.
This is something to keep an eye on as it can greatly affect the market and our trading decisions. So, to sum it up, next week there will be some important events happening involving interest rates and inflation data in the UK.
This will affect the trading world, especially when it comes to the EUR/GBP pairing. It's important to stay informed and be prepared for potential changes and opportunities.
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