Strategy Video: GBPUSD, Pound Traders Ready for Volatility After BoE Report

By DailyFx | August 12, 2014 AAA

DailyFX.com -

Talking Points:

• Interest rate expectations have charged the British pound higher for much of the past year

• While the BoE looks to be on pace for a hike before most counterparts, expectations are very high

• The BoE Quarterly Inflation Report (QIR) promises to clearly update rate potential

Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

Among the major central banks, the Bank of England is seen as the closest to realizing rate hikes. Those hawkish expectations have charged the British Pound higher for the better part of a year. Now, with GBPUSD hitting six year highs and the sterling advancing against safe haven and high-yield counterpart alike, there is a growing concern that rate expectations (and the currency) have pushed too far too fast. Is the BoE close to that first hike? Is the pound fairly valued or expensive? The BoE's Quarterly Inflation Report (QIR) can clarify expectations and drive the pound. What do we look for in the report? What pairs are best positioned for the different outcomes from the report? We focus on that in today's Strategy Video.

Sign up for John’s email distribution list, here.

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD reached 1.6050 with GDP help
    Forex News

    GBP/USD reached 1.6050 with GDP help

  2. GBP/USD struggling to rise above 1.6042 - FXStreet
    Forex News

    GBP/USD struggling to rise above 1.6042 - FXStreet

  3. GBP/USD Dark Cloud Cover Delivers Further Declines
    Forex News

    GBP/USD Dark Cloud Cover Delivers Further Declines

  4. GBP/USD is still hopeful before UK GDP
    Forex News

    GBP/USD is still hopeful before UK GDP

  5. GBP/USD Buyers at the 1.60 Handle
    Investing

    GBP/USD Buyers at the 1.60 Handle

Trading Center