Bank of England As Expected: No Moves On The Pound

There was nothing of note in the Bank of England statement that was not already widely expected, and therefore built into fair value on the pound. The Bank will continue its liquidity program, and will maintain 0.5% as the overnight interest rate.

The moves straight after the announcement look to be speculative book balancing, and have not impacted other major pairs. Having already moved through two pivot point areas ahead of the release, the pound will need to draw in much larger volume increases to now make the next leg higher.

Back to looking at equities, oil, and gold, to see if the global market is going to be able to move forex prices. We need to keep in mind that the U.S. has 16% of the global forex order flow, compared to 53% in European, and 21% in Asian trade; if things are to move, they may want to do it ahead of the 11:00 EDT European close.

Canada posts Housing Starts at 08:15 EDT, and the U.S. Weekly Unemplyment numbers are posted at 08:30 EDT; we may go into a holding pattern ahead of those releases.

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