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Forexmart's Market Analysis section provides up-to-date information about the financial market. The overviews are intended to give you an insight into current trends, financial forecasts, global economic reports, and political news that influence the market.

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August 6, 2020 08:38 am

GBP/USD. August 06, 2020 – What to expect from the Bank of England meeting?

GBP/USD is approaching the 1.3200 level, the high of early March. The sterling is supported by investors' expectations of today's meeting of the Bank of England. The regulator is to make a statement on monetary policy, as well as submit a quarterly report on inflation in the UK.


The central bank is not expected to change its monetary policy as macroeconomic indicators continue to show an improvement in the UK economy. Moreover, the situation with the spread of Covid-19 in the country remains under control.


However, in June, the position of the Bank of England turned out to be more «hawkish» than market participants had expected. If at today's meeting the atmosphere is saturated with pessimism and the regulator lowers economic forecasts, the pound sterling will inevitably go down to the 1.30 area. Additional pressure on the currency will come from the revised downward indicators of business activity in the services sector (56.5 points) and the composite PMI index (57.0).


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.
Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.