Bank of England Interest Rate Decision

Last week traders’ expectations were met by Bank of Japan and Bank of Canada, which kept their interest rates at 0 percent and 1 percent respectively. Bank of Japan cut its economic growth outlook to 1 percent from 1.1 percent, which had a negative impact on the Yen.

There is a soft start to the trading week on Monday 21st of July, with little in the way of market-moving news. Moving onto Tuesday the 22nd, Aussie dollar traders can look out for Bank of Australia Governor Glen Steven’s speech, set for 03.00. A high-impact event happens at 12.30 when the US releases its annual Consumer Price Index for June. Inflation was previously reported at 2.1 percent, and analysts do not expect any change in this figure.

On Wednesday 23rd of July, it’s Australia’s turn to release CPI data for the second quarter on an annual basis. Inflation was previously 2.9 percent on higher prices for tobacco and car fuel. This release is bright and early at 01.30.

At 8.30, Bank of England releases its all-important minutes and interest rate decision. Analysts expect BOE to keep the rate unchanged at a record low of 0.5 percent, in a bid to encourage economic growth and recovery.

Finally for Wednesday’s trading day, the last high-impact event is at 21.00, when New Zealand releases its interest rate decision, expected to rise to 3.5 percent from 3.25 percent, according to analysts. For traders interested in the New Zealand dollar, this is a high-priority event.

On Thursday 24th July, Yen traders will watch for opportunities when Japan releases its inflation rate for June, reported on an annual basis. The event is at 23.30, and was previously reported at 3.7 percent.

On Friday, the UK releases its GDP data for the second quarter on an annual basis at 8.30 AM. This is a popular event for traders of the GBP crosses and was previously reported at 3 percent. USD traders also have possible opportunities later in the day at 12.30, when the US releases its Durable Goods Orders for June. They were previously at MINUS 0.1 percent, and expectations are that they will rise to 0.7 percent on an annual basis.