Global macro overview for 03/11/2016:
The Bank of England policy members had decided today to leave the interest rate unchanged at the level of 0.25% together with the asset purchase facility at the level of 435 billion Pounds. Moreover, the BoE Minutes and Inflation Report has revealed that the monetary policy can respond in either direction to achieve 2% target inflation. In the BoE quarterly inflation review the policy members said, that impact of Pound on inflation to be temporary, offsetting fully with higher rates would be too costly as they are monitoring closely the evolution of inflation expectations. The CPI forecast, based on market interest rates and model projection, should reach 2.72% instead 2.0% indicated in August, the fourth quarter GDP growth of +0.4% and GDP growth of +2.2% vs 2.0% in the previous forecast. In conclusion, very hawkish BoE report and inflation projections together with GDP projections for 2016 might be a first step to hike the interest rate in the near future ( but not before FED).
Let's now take a look at the GBP/USD technical picture after the news. The price jumped towards the next technical resistance at the level of 1.2478, just below the long term golden trend line resistance. The question remains, whether the bull camp is strong enough to hold this level or even break out above it before the daily candle ends. If they bulls will manage to break out, then the next resistance is seen at the level of 1.2682.
From www.instaforex.com http://ift.tt/2eXYzBc
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