Will BOE and GDP move GBP? We'll see

No one around the financial markets?is expecting?the Bank of England to cut their base rate from 5.25% when they?make their announcement?at noon today.?The rhetoric emanating from the BOE has been monotonously cautious?and,?although interest rates do need to start falling at some stage, ?it is too early to expect the?UK's?central bank to make that change in May. However, what?is generally priced?into the market is a commencement of some form of reduction in the cost of borrowing, starting in June or July. Hence, if there is any change of sentiment in the statement or the press conference that accompanies?today's?interest rate decision, Sterling is susceptible to volatility. The Pound is relatively stable in the interbank market where, as?at?this morning, one of your Great British Quids will buy USD 1.2480, EUR 1.1620, AUD 1.90, NZD 2.0810 or CAD 1.7140. Where those rates will be by the?afternoon,?depends entirely on the words and comments published by the Bank of England.

The Pound will also be the centre of attention in the early hours of tomorrow when?the UK gross domestic product data will be published?for the first quarter of 2024. The market forecasts suggest quarterly growth of 0.4%, which would equate to zero growth in the year to March. Those numbers?are already priced?into the value of the Pound, so anything better or worse will also cause some volatility in the value of sterling.?Alongside that data, we will see manufacturing and industrial production figures,?the forecasts for?which are very mixed.?These could also give rise to further fluctuations in?Sterling’s?value. Brace yourselves for 24 hours of fun and games.

Today's?Major Economic Releases

11:00 GBP BoE Asset Purchase Facility?

11:00 GBP BoE Interest Rate Decision?

11:00 GBP BoE Minutes?

11:00 GBP BoE Monetary Policy Report?

11:00 GBP BoE MPC Vote Rate Cut?

11:00 GBP BoE MPC Vote Rate Hike?

11:00 GBP BoE MPC Vote Rate Unchanged?

11:00 GBP Monetary Policy Report?

11:30 GBP BoE's Governor Bailey speech?

15:00 CAD BoC's Governor Macklem speech?

Interbank Exchange Rates