GBPUSD is falling back before the Bank of England decisions

Mohammed Abdelkhalik
November 4, 2021

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GBPUSD returned to decline on Thursday morning in the European market and resumed recording its losses to trade near its lowest level in three weeks. Safe and alternative, the Bank of England is expected to release the results of its regular meeting later today.

GBPUSD is falling again


GBPUSD traded at the level of $1.3632, losing about 0.4% from the opening level of today’s session at $1.3682, and the pair closed yesterday’s trading, achieving a rise of about 0.5% within the recovery processes from its lowest level in three weeks at $1.3605, which is recorded in the day before.

Later in the day, the BoE is due to release the results of its regular meeting, and the Bank is expected to keep monetary policy unchanged, as it will keep interest rates at current levels of 0.10% and the stimulus program of 895 billion pounds per month.

The USD is rising before the release of important data

The US dollar witnessed a rise against a basket of major currencies in the morning trading on Thursday, resuming its gains that were halted yesterday, to trade near its highest level in three weeks, and the US economy is expected to release important data on weekly jobless claims.

The dollar index traded at 94.28 points, adding about 0.5% from the opening level of today’s session at 93.85 points.

The Federal Reserve decided during its meeting yesterday to keep interest rates at their current levels unchanged at 0.25%, but officially approved the start of reducing its purchases from the bond purchase program of $ 15 billion per month, and the program is scheduled to be phased out in the middle of 2022.

Bank President Jerome Powell commented that the Bank will not be in a hurry to raise interest rates and will not make a decision about the timing of starting to raise them, adding that the current high inflation rates are temporary.

Later in the day, the US economy is expected to release weekly jobless claims for the past week, and expectations indicate that it will record about 0.273 million applications, compared to the previous reading of 0.281 million applications, which is the lowest since March 2020.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.