Trading volatility: UK rates
A potential peak in volatility, in the week starting Monday 17 June, may well be the Bank of England rate decision.
There is little or no chance of a cut this time around but traders will be watching the commentary that accompanies the decision. Will the MPC members hint of a cut in August, or are rates of pay still too high? IGTV’s Jeremy Naylor looks at GBP/EUR.
(AI Video Summary)
In the financial markets, key attention is drawn to the upcoming Bank of English interest rate decision, expected on Thursday. The anticipation builds as traders speculate on possible outcomes, especially since no change is anticipated prior to the elections in early July. The stability of the pound sterling against the euro is spotlighted amid political disturbances in the euro area, primarily influenced by the French elections. Critical trading levels for GBP/EUR are suggested around 119.90, contingent upon the Bank's future rate policy signals. This decision could potentially mark post-Brexit and pandemic fluctuations, impacting trade strategies in the forex market.
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