Markets.com Logo
euEnglish
LoginSign Up

Eyes on Thursday BoE meeting as sterling trades sideways

Oct 31, 2023
4 min read
Table of Contents
  • 1. Pound sterling shows muted dynamic ahead of BoE rate decision 
  • 2. BoE interest rates: Markets expecting hold on Thursday 
  • 3. GBP forecast: Scotiabank says trading may be “quiet” in lead-up to BoE meeting 

Sterling.jpg

 

Pound sterling shows muted dynamic ahead of BoE rate decision 

The British pound showed relative stability against the dollar and euro on Monday, with traders directing their attention to the upcoming Bank of England (BoE) meeting scheduled for later in the week. 

It is widely anticipated that the BoE will maintain its current interest rates on Thursday, and the focus is expected to shift towards the broader outlook following a series of underwhelming UK economic data readings. 

The British pound has seen subdued performance in the currency markets in recent weeks, impacted by diminishing risk appetite, apprehensions in the stock market, and the ongoing conflict in the Middle East. 

 

 

BoE interest rates: Markets expecting hold on Thursday 

Currency analysts cited by Reuters on Monday emphasized that the deterioration in UK economic indicators, such as last week's labor market data revealing a reduction in inflationary pressures, has solidified market expectations of the BoE keeping interest rates unchanged. 

In addition, data from the BoE released on Monday revealed that British lenders granted the fewest home loans in September, marking the lowest figure since January. This further underscores the sluggish state of the property market. 

Markets.com Chief Market Analyst Neil Wilson summarised the factors that will likely affect the BoE’s interest rate decision in his morning notes on Monday: 

“[…] the Bank of England is expected to leave rates on hold at 5.25% again and signal it’s done with tightening for now. It paused the 2-yr hiking cycle in September and there seems little to recommend changing course. It’s scaled Table Mountain and is happy to enjoy the view before descending the cable car. Three hawks who voted for rates to rise last time to 5.5% may still vote this way – and it would be likely that the MPC would reiterate forward guidance suggesting it could raise rates again if required. 

Although inflation held firm at 6.7% in September, no fireworks are expected from the Monetary Policy Committee at the November meeting. Signs of labour market weakness and softening growth outlook will stay the hand of the MPC. The unemployment rate rose to 4.2% between June and August, up from 4% in the March-to-May quarter, whilst signs of a slowdown in the economy seem to be building.” 

As of the latest trading, the pound to dollar rate was stable at $1.2148 and had declined by 0.25% against the euro, amounting to 87.37 pence. 

 

GBP forecast: Scotiabank says trading may be “quiet” in lead-up to BoE meeting 

In a note cited by Reuters, currency analysts at MUFG said that the BoE was likely at the peak of its rate tightening cycle and that the key would now be "communication in terms of assessing the prospects of a pivot toward a more dovish stance over coming meetings". 

"We are likely some distance from that for the BoE but certainly most of the data released since the last meeting in September has pointed to weak economic activity. That may well mean the growth projections in the Monetary Policy Report could show a downgrade from the forecasts in August," the analysts added. 

In his GBP forecast, Shaun Osborne, Chief FX Strategist at Toronto-based Scotiabank, said the pound to dollar rate was likely to remain more or less stable prior to Thursday’s central bank meeting: 

“Trading may remain relatively quiet ahead of the BoE policy decision on Thursday. Markets expect policy to be left on hold but the GBP may see a minor bid if the voting shows a tight split among the nine policymakers. 

A minor bid for the pound could extend a little more above 1.2160 but here too, trend momentum is weak, favouring more range trading.  

Support is 1.2070 and 1.2040.” 

When considering foreign currency (forex) for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.


Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

Georgy Istigechev
Written by
Georgy Istigechev
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    0.12%
  • EUR/USD

    chartpng

    --

    0.08%
  • Cotton

    chartpng

    --

    0.64%
  • AUD/USD

    chartpng

    --

    -0.22%
  • Santander

    chartpng

    --

    0.45%
  • Apple.svg

    Apple

    chartpng

    --

    -1.17%
  • easyJet

    chartpng

    --

    0.62%
  • VIXX

    chartpng

    --

    0.00%
  • Silver

    chartpng

    --

    -0.51%
Tags DirectoryView all
Table of Contents
  • 1. Pound sterling shows muted dynamic ahead of BoE rate decision 
  • 2. BoE interest rates: Markets expecting hold on Thursday 
  • 3. GBP forecast: Scotiabank says trading may be “quiet” in lead-up to BoE meeting 

Related Articles

Trump Admin Leverages Fed Renovation for Powell Ouster Amid Rate Dispute

The Federal Reserve's independence faces challenges as the Trump administration uses costly building renovations as leverage amid disagreements over interest rates. The article analyzes the potential implications for monetary policy.

Sophia Claire|about 2 hours ago

Pound Sterling Outlook: Interest Rates and Economic Indicators in Focus

The pound sterling is heading for its longest losing streak in two years as expectations of Bank of England interest rate cuts and weak economic data weigh on the currency. This article analyzes the factors affecting the British currency.

Emma Rose|about 2 hours ago

Trump's Tariff Threat Looms: Will It Trigger EU Recession and Force ECB Rate Cuts?

This article explores how Trump's tariff threats against the EU could lead to a deeper economic slowdown and push the ECB to cut interest rates. It also analyzes the perspectives of major financial institutions.

Sophia Claire|about 6 hours ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Regulation
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Finalto International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.