Bank of England’s ‘Super Thursday’ Preview

Super Thursday is back.

…………… thanks to Bank of England’s (BOE), mega releases and events. Today Bank of England (BOE) will announce its regular monetary policy along with minutes. What makes today special is quarterly inflation report, which will be followed by a speech from Governor Mark Carney.

All the three releases individually have enough firepower to generate volatility spikes and release of all three might cast a storm over pound based pairs. All will though depend on wordings.

Preview of the four –

• Monetary policy decision – No major change is expected from interest rates point of view, as the governor recently indicated in a public speech that the central bank is in no hurry to raise rates.

• BOE minutes – This release will be the center of the focus for today. The focus will be on the number counts of the doves and the hawks. At a meeting earlier this year, Michael Saunders and Ian McCafferty surprised the market by opposing the status quo by calling for an increase in the interest rate. So, it would be interesting to see if others would join them or would they be the sole dissenter once more. 

• Quarterly inflation report – Possibilities are high that tone might be hawkish while forecasting inflation as several indicators pointing to elevated cost.

• Mark Carney speech – Mr. Carney is most likely to exert his firm view over interest rate neutrality with a more hawkish forward-looking but he is also like to point out that now may not be the time to hike rates. The market would be interested in his comments on the ongoing Brexit negotiations and his take on the future of euro clearings in London.

Pound is currently trading at 1.357 against the dollar.