BOE’s Super Thursday preview

Today is Thursday and it's a super one, thanks to Bank of England (BOE), which set to release its monetary policy decision along with two other releases - BOE minutes and quarterly inflation report. To add to the mix, BOE governor Mark Carney is scheduled to speak

All the three releases, individually have enough firepower to generate volatility spike and release of all three might cast a storm over pound based pairs.

Preview of the four releases:

• Monetary policy decision - No major change is expected from interest rates point of view, however hawkish tone in the policy statement might set the mood for Pound and Gilts.
• BOE minutes - This release will be the center focus for today. There are expectations that as high as three MPC members namely Martin Weale, Ian McCafferty and David Miles could vote in favor of a rate hike. Both Mr. Miles and Mr. McCafferty are at the end of their term, which is set to expire at the end of the month. There are possibilities that they might exert their view in their last meeting with vote in favor of rate hike. Mr. Weale is a known hawk who has voted for hike earlier in 2014.
• Quarterly inflation report - Possibilities are high that tone might be dovish while forecasting inflation as energy prices have taken a plunge for the second time this year.
• Mark Carney speech - Mr. Carney is most likely to exert his firm view over interest rate hike in next year. Market participants might be listening closely to understand the variables that might influence the decision.

Pound is currently trading at 1.561 against dollar.

Possibilities are quite high of a 9-0 vote from BOE, which would slump the pound, however it is likely to remain well bid.