Statement From fx360 For GBP/USD

BOE MEETING MAY BECOME A NON-EVENT FOR FOREX MARKETS

The pound is well contained in today’s trading showing only a slight move to the upside. It does not appear to just be the holiday weekend that is keeping GBP/USD motionless, as weekly price action has been hesitant to show any clear direction. As a better indication of pound sentiment, a look at EUR/GBP shows that the pair has staged a steady downward drift for most of this week. This situation is a rare find in a week with a BoE decision, among other central bank decisions. It is apparent that yesterday’s meeting presented nothing new for the markets to move on. The BoE only reaffirmed their backing of the quantitative easing program that they initiated last month. It is a real possibility that, judging by this week’s decision, the BoE meeting will become a non-event like the BoJ and even the Fed. It seems that at this point, all has been dispensed in their efforts. For future meetings, any surprise will come from either change in the asset purchases or in the event that the policy shows some signs of success. UK data will be sparse next week, emphasizing the housing market with DCLG House Prices and RICS House Price Balance.