[VIDEO] BOE’s Bailey cautious, but not too cautious!

If the BOE continues to be less dovish that than ECB, EUR/GBP may continue lower.

FOREX 4

Bank of England Governor Bailey spoke earlier today.  Baily said that the slowing of COVID infections was a “huge accomplishment”, however he noted “If I had to summarize the diagnosis, its positive, but with a large dose of cautionary realism”

He said that the central bank’s main goal was to get inflation to the targeted 2% and keep it there before anymore burden of proof was needed on the sustainability of the economy.   

Learn Everything you Need to Know About the Bank of England

Contrast those comments with comments from some ECB officials last week, who noted that they felt the ECB needs to pick up the pace of its bond buying program to keep interest rates low, and the Sterling should outperform the Euro

The ECB meets on Thursday and the BOE meets next Thursday

If the BOE continues to be less dovish that than ECB, EUR/GBP may continue lower.  However, if the ECB surprises and is less dovish at their interest rate meeting on Thursday, EUR/GBP may bounce.

Learn more about forex trading opportunities.


 

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.