GBP/USD

Critical week ahead for the UK pound!

First event to look at, is the BOE meeting. Expectations for a rate hike at this meeting is almost nullified. Although, it’s important to hear what Mr. Carney is going to say in his speech and also what the MPCs are going to vote, only one more vote favoring a rate hike will need to push GBP/USD higher. Inflation readings are also important for the path of BOE monetary policy, expectations are pointing to 2.8% just lower than the last one 3%. A bigger reading will definitely push BOE to accelerate their interest rate hike policy. On March the 22-23 the European council will agree that the transitional period will favor UK businesses. A favorable agreement will be a boon for GBP and may target a new fresh high level possible around 1.4500. If no agreement can be found will have a negative impact on GBP and we could see lows as far as 1.3500 in the coming weeks.