GBP/USD: BoE To Stay Hawkish On Thurs, Dips A Buy On Any Dovish Outcome – BofAML

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The Bank of England convenes to make its March decision in the shadow of the EU Summit on Brexit and amid mixed data from the UK. How will it impact the pound?

Here is their view, courtesy of eFXnews:

Bank of America Merrill Lynch FX Strategy Research discusses GBP outlook, going into the BoE meeting on Thursday.

We expect the Bank of England (BoE) to stay hawkish at Thursday’s policy meeting. We still assume the BoE will hike rates in May and it will continue to signal that. We expect a 9-0 vote to keep rates on hold, though there is a chance of a vote or two for hikes. This call has nothing to do with the data, which have disappointed,” BofAML argues.

From a strategy perspective, we think markets are focused on their views on the labour markets. In our view, any disappointment from a dovish MPC would present a buying opportunity,” BofAML advises. 

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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