Published: 03/05/2022 By ECAPThe pound sits at lows after a poor performance last week. Investor eyes now focus on Thursday, for the Bank of England interest rate decision meeting. Whilst markets are forecasting a 25 basis point hike, its the rhetoric that follows which will be key for markets. The BoE is widely considered the least forth coming in comparison to the FOMC and ECB in regards to future policy, considering the market focus is on hiking rates to curb inflation, it could be said the UK is falling far behind in comparison to its counterparts.
Wednesday evening also sees the FOMC funds statement and press conference, there are numerous forecasts for the US to be aggressively hiking rates until the year end with some forecasts citing a further 200 basis point hike to occur so a 25 basis point hike might go under the radar however once more, it will be the comments that follow in the press conference that markets will be keenly viewing as future policy determines investor confidence resulting in currency performance.