Daily Video Analysis: England to Move the Markets

Good morning and welcome to CupO’Forex. This is David Frank with your daily video analysis for Wednesday. October 22.

Today, all eyes are on England as its Monetary Policy Committee (MPC) is set to have its policy meeting today. The MPC is the monetary policy body of the Bank of England (BOE). The BOE is under enormous pressure to normalize policy by being the first Western power to raise its benchmark lending rate. There is a chance we will get a move today or, if the stand pat, a clear timeline in the remarks to follow. This will affect the Forex markets, in particular the Dollar, euro and Sterling. We should also see volatility in the equities markets.

Later today at 1230 GMT the U.S. will release its core consumer price index, ex- food and energy. We are expecting inflation in the States to remain benign. At 1400 GMT the Bank of Canada (BOC) jumps into the fray with its policy decision. This follows their retail sales release. Data out of Canada has been steady and we expect no changes to policy at this time. We will be listening to the BOC statement afterwards as they will talk about monetary policy as well as the current price level of their Canadian Dollar, which is a bit high.

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