📈 GBP trades higher against USD and JPY ahead of BoE rate decision
There are numerous central bank monetary policy announcements scheduled for today but the one from the Bank of England at 12:00 pm GMT will be the most closely watched ones. Big jump in November's CPI inflation reported yesterday boosted odds for a quicker policy action from the UK central bank. UK has met conditions for a rate hike it has set last month but emergence of a new highly transmissible coronavirus variant Omicron may cause BoE to delay any rate move into next year. Interest rate derivatives are currently pricing in around a 30% chance for rate hike today so there is a scope for a surprise.
British pound is trading mixed compared to major currencies ahead of BoE policy decision - GBP gains against USD, CHF and JPY while dropping against CAD, AUD and NZD. Taking a look at GBPUSD chart, we can see that the pair has been trading in a downward move for over a month already. Declines were recently halted at the 1.32 support zone recent and the pair started to move higher. 100-period EMA at H4 interval is being tested at press time and should we see a break above it, the upward move may extend towards the next resistance zone at 1.3350, marked with the upper limit of the market geometry.
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Source: xStation5
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