The bank of England’s interest rate cut sends the pound back to July low’s against euro and the greenback. Today on Asia session, McCafferty said bank rate can be cut further, closer to zero, and quantitative easing can be stepped up. The pound is trading lower nearly 0.3% on the Asia session after the new hits wires.
- Bank Rate to 0.25% and introduces a package of measures designed to provide additional monetary stimulus.
- The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target.
- Bank of England cuts According to the preliminary estimate, GDP grew by 0.6% in 2016 Q2, above the 0.3% projected in May.
Full story: Bank of England Monetary policy summary
Also read: Near-term outlook for UK’s GDP
What’s on this week?
June UK manufacturing production: forecast -0.2% vs -0.5% m/m basis and forecast 1.4% vs 1.7% y/y basis.
June UK industrial production y/y basis, forecast 1.3% vs 1.4%
Germany July inflation: forecast 0.3% vs 0.3% on m/m basis and 0.4% vs 0.4% on y/y basis
Germany prelim GDP: forecast 0.3% vs 0.7% q/q basis
EU 2Q GDP ; forecast 0.3% vs 0.3% Q/Q basis and 1.6% vs 1.6% on y/y basis.
Technical view: The cross is trading at 0.8530 on Asia session with 0.35% gains.
Resistance seems at 0.8540-0.8550, 0.8600 and 0.8700 levels. Alternatively, support finds at 0.8460, 0.8400 and .08340 levels.
The selling accelerates below 0.8400 to 0.8300 and 0.8250 and 0.8200 levels.
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