BoE to Leave Rates Unchanged; Traders Eye Buyback Plan

Traders are certain the Bank of England will leave interest rates unchanged.  The question is will it maintain its plan to buy back government assets.  Questions regarding the growing budget deficit need to be answered.

The GBP USD was under pressure early Wednesday as traders evened up positions ahead of tomorrow’s Bank of England interest rate decision. The BoE is expected to keep its benchmark interest rate at 0.50% but may offer significant information regarding its quantitative easing plan.

Traders are curious to see if the BoE ramps up its efforts to buy government assets in an effort to revive the economy. U.K. investors are also looking for guidance regarding the U.K.’s widening budget deficit that was estimated last month about 90 billion Pounds.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More