-Â Bank of England (BoE) Widely Expected to Reestablish Easing-Cycle.
-Â Will BoE Governor Mark Carney Implement a Range of Policy Tools?
Trading the News:Â Bank of England Interest Rate Decision
The Bank of England (BoE) interest rate decision may heavily impact the British Pound and spark a near-term decline in GBP/USD should the central bank revert back to its easing cycle and implement more non-standard measures to support the U.K. economy.
What’s Expected:
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Why Is This Event Important:
With the U.K. preparing to depart from the European Union (EU), the BoE is widely anticipated to enlist a range of tools to insulate the real economy, but Governor Mark Carney may fail to deliver a multi-pronged approach to combat the risks surrounding ‘Brexit’ as the central bank sees a risk of overshooting the 2% inflation-target.
Expectations: Bearish Argument/Scenario
|
Release |
Expected |
Actual |
|
GfK Consumer Confidence (JUL) |
-8 |
-12 |
|
Retail Sales ex. Auto Fuel (MoM) (JUN) |
-0.6% |
-0.9% |
|
Average Weekly Earnings ex. Bonus (3MoY) (MAY) |
2.4% |
2.2% |
Waning confidence paired with the slowdown in household spending may push the Monetary Policy Committee (MPC) to further support the real economy, and a wave of fresh monetary support may drag on the sterling as the central bank reestablishes its easing cycle.
Risk: Bullish Argument/Scenario
|
Release |
Expected |
Actual |
|
Net Consumer Credit (JUN) |
1.4B |
1.8B |
|
Gross Domestic Product (YoY) (2Q A) |
2.1% |
2.2% |
|
Consumer Price Index Core (YoY) (JUN) |
1.3% |
1.4% |
