United Kingdom Official Bank Rate May 5 2022
What does the data mean to the market?
Bank of England (BOE) monetary policy committee members vote on where to set the rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
A higher than expected rate is positive/bullish for the GBP, while a lower than expected rate is negative/bearish for the GBP.
See the report history here :
Historic deviations and their outcome
I will use forecasts of:
Interest Rate Statement 1.00
Today's trade plan
Today the official forecast is for the rate to be hiked to 1.00% Therefore I will be looking to take a buy or sell on an deviation of 0.25% in either direction
Hope this helps but please do your own analysis!!
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.