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What Might Happen From the BoE Minutes?
To put it simply, more then 1 vote against the last raise will be negative for the GBP, but how might it go? Let's look at what happened the last time the minutes were released back on 10/18, which came 2 weeks after the BoE voted to hold the rates steady.
The minutes showed 2 dissenting votes (2 votes that voted for an increase). The market interpeted that as meaning that the BoE was sure to raise the rate at the next meeting on 11/9, which it did eventually do.
http://www.bloomberg.com/apps/news?...id=aGKegA0VPgu0
The pound did not spike up immediately after the realease, but it did go from 8677 on 10/18 all the way to a high of 9178 on 11/9 (the day the BoE announced the increase), about 500 pips. No, it wasn't a steady rise, but you can see what the minutes were worth to the market. The best part about this trade was that you could have stayed in it all the way to 11/9 without ever being in a negative position, although the profit varied.
The next BoE rate announcement is scheduled for December 7. Early Christmas present anyone?
What Might Happen From the BoE Minutes?
To put it simply, more then 1 vote against the last raise will be negative for the GBP, but how might it go? Let's look at what happened the last time the minutes were released back on 10/18, which came 2 weeks after the BoE voted to hold the rates steady.
The minutes showed 2 dissenting votes (2 votes that voted for an increase). The market interpeted that as meaning that the BoE was sure to raise the rate at the next meeting on 11/9, which it did eventually do.
http://www.bloomberg.com/apps/news?...id=aGKegA0VPgu0
The pound did not spike up immediately after the realease, but it did go from 8677 on 10/18 all the way to a high of 9178 on 11/9 (the day the BoE announced the increase), about 500 pips. No, it wasn't a steady rise, but you can see what the minutes were worth to the market. The best part about this trade was that you could have stayed in it all the way to 11/9 without ever being in a negative position, although the profit varied.
The next BoE rate announcement is scheduled for December 7. Early Christmas present anyone?