BoE Preview: Pound Sterling could benefit somewhat from a fairly quiet meeting – Commerzbank

FXStreet Insights Team FXStreet

Economists at Commerzbank analyze how the Bank of England’s (BoE) policy decision could impact the Pound Sterling (GBP).

Expectations have shifted somewhat towards a dovish surprise

Presumably, the decision will not bring much news. After all, there will be no press conference and no new forecasts will be released. And a change in the key interest rate is also very unlikely.

It may be that after Wednesday's rather low inflation figures, expectations have shifted somewhat towards a dovish surprise. If this is the case, and the BoE delivers as we expect, the Pound could benefit somewhat again.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.