Forex Trading: Holding Short EURGBP Ahead Of BoE Minutes

DailyFX

We’re looking to hold our short EURGBP position from 0.8128 ahead of the Bank of England (BoE) Minutes as we anticipate the Monetary Policy Committee to strike a more neutral tone for monetary policy, and the fresh batch of central bank rhetoric may spark a more meaningful reversal in the exchange rate should a growing number of BoE officials talk down expectations for additional monetary support. As the central bank sees inflation holding above the 2% target over the next two-years, we should see the BoE brings its easing cycle to an end, and the shift in the policy outlook should produce further declines in the exchange rate as the European Central Bank (ECB) keeps the door open to implement additional monetary support.

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