Dmitri Lysenko
Traders and investors around the globe keep discussing the possible date when the Bank of England may start toughening its monetary policy. More and more analysts are convinced that the BOE will be the first central bank among developed economies to raise interest rates.
In particular, Nomura and Citigroup expect the British central bank to raise interest rates this year. They say that the major factor confirming their predictions is the fact that the British economy is current recovering at the fastest pace among all the developed economies of the world.
Still, such predictions contradict the dynamics shown by currency futures. If to consider the tendencies, we may expect higher interest rates in the UK only in early 2015. At the same time, the Bank of Japan and the ECB are expected to abstain from toughening their monetary policies in the near future. On the contrary, they are expected to continue their QE programs.
According to Morgan Stanley, the Bank of England will be looking for any sings of economic recovery in the UK and if this is the case, the central bank will raise the rates before the same is done by the Fed.
According to Masterforex-V Academy, the British Pound keeps declining against the US Dollar. The experts report that GBPUSD is forming wave А/В of level H12.
A further decline will probably give way to further lows, especially if the price breaks below 1,6229. The current bearish move will be completed as soon as the price overcomes the top of the MF sloping channel and consolidates above 1.6606 (as shown below).
Dmitri Lysenko
