BOE monetraary policy announcement at 12.00 GMT
Here’s how it’s going to go down;
- Rates left unchanged
- Gradual path of hikes
- Usual waffle on slack and productivity
- Brexit watching
- Usual waffle on risks
The only real risk is comments on inflation. Carney & Co started by putting the peak at Oct, then Oct/Nov. They could keep that line or they could push it a bit further out. Any change in language here will move the quid. Also keep an eye on the votes, expected to be 9-0 for unchanged.
Overall, I’m not expecting fireworks but if there are, 1.3470, 1.3500/10 and 1.3545/50 & 1.3400, 1.3370/80 & 1.3340/50 are the S&R levels to watch for.