Market Focus

On Thursday, 02.11.2017, one should focus on the news block on the UK. Data on the volume of the Bank of England’s QE program and the interest rate decision will be published. According to the forecast, the Bank of England will keep the interest rate at 0.25%, the program QE promises to stay at the level of 435 billion pounds. To date, the main task of London is to achieve all the necessary agreements with the EU on Brexit. Based on the facts mentioned above the Bank of England can still take a cautious stance.

Today, according to the forecast, the Bank of England will raise the interest rate from 0.25% to 0.50%, which is due to a significant increase in inflation in the UK. If the forecast is confirmed, the pound will receive support and one should expect its growth in the range of 80-100 points against competitors. If a decision to keep the interest rate at the same level is made at the meeting, the pound will be under pressure. Its decrease will depend on the distribution of the votes of the members of the Committee on Monetary Policy and may also be within 80-100 points.

Alexander Sivtsov