Dear clients,
On June 22, the Bank of England makes a report on the matter of the interest rates, it is one of the most important events affecting the quotes of the pound sterling. Inflation is one of it’s main predictors. Using these data, a trader can judge the internal and external economic development of the country, which is especially important when trading pairs that include the GBP.
What to expect and what to pay attention to, tells our leading analyst:
The Bank of England may raise the discount rate by 0.25 p.p. to 4.75% today and signal to traders that further rate hikes are needed due to high inflation in the U.K. economy. A rate hike is negative for the stock market and it is preferable to open a Sell position in the UK #FTSE100 index on Thursday.
During the inflation period, a drawdown bonus is an excellent choice: until June 30, instead of 101%, you get 202% when topping up of 202 USD or more.
