“On the eve of the Bank of England and the ECB the single European currency and the British pound traded at a slight decline against the U.S. dollar", - analysts said the company's Forex Broker Alpari (rated among the TOP Forex Brokers Masterforex-V World Academy). By 13:52 MSK euro/dollar stabilized at 1.3520, GBP/USD was trading at 1.6293 to decline. Market participants are waiting for the decision of the two central banks on interest rates. At 16:00 MSK announce its decision and the Bank of England at 16:45 MSK pending the outcome of the ECB meeting, as analysts Forex.
Recently, sentiment towards the euro worsened.
Inflation in the euro area for a few months is below the ECB's target level of 2%. In this regard, experts say Forex, some economists believe that the ECB today, February 6, 2014, will reduce interest rates. According to the experts surveyed by Bloomberg, the ECB at this meeting to keep the base rate at 0.25%, the deposit rate - at zero.
If the ECB will leave rates unchanged, market participants' attention immediately switches to the press conference, Mario Draghi, head of the ECB which will give the balance of voting and will respond to questions from journalists, analysts Forex. When saving rates will be important for the market, the decision was taken unanimously or not.
As for the Bank of England, the immutability of the monetary policy of the Bank of England will give support to the British pound until Friday, and then it is necessary to see what will be said in the accompanying statement of the Central Bank, the monetary policy of binding to the unemployment rate, as reported by experts Alpari Forex. The unemployment rate began to decline faster than expected CB, so Mark Carney must submit a new indicator for the binding. Carney has repeatedly said in their speeches that raise rates sooner. We need to give more time for the UK economic recovery. According to analysts Forex, if you hear that rates will remain low for a long time - the pound fall against the dollar and euro.
U.S. sensitive data does not leave. This means that the generation of session Forex trends and their duration on major pairs will be directly dependent on the performance of M. Draghi and the accompanying statements of the Bank of England, says the experts as Forex.
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