Forex Fundamental Analysis – New forecasts of the Bank of England


GBPUSD trading plan:

Bank of England Governor Andrew Bailey said that he still thought that inflation was likely to fall sharply next year, broadly in line with forecasts the British central bank presented in early May. Bailey told a parliamentary committee that he did not expect a new set of forecasts due on Aug. 4, which BoE staff were preparing, to show a fundamentally different picture. „I always go into forecasts with an open mind, and that’s critical, but I think the basic fundamentals of that profile remain in place today,“ Bailey told lawmakers. Inflation, which hit a 40-year high of 9.1% in May, was likely to be back at its 2% target in about two years, he added. Traders see a nearly 70% chance of a bigger-than-usual, half-percentage-point rate hike by the BoE on Aug. 4. The central bank has already raised borrowing costs five times since December.

Investment idea: sell 1.1844 and take profit 1.1790.

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