Sep 7 : BoE Rate Decision

Last month, the BoE MPC hikes UK base rate by 25bp to 4.75% by surprise. Results = +60 pips. Would like to see what will happen on Sep 7. Any good suggestion on trading this news ?

BoE is not prolific in increasing their rates as much as Bernanke does.

Expectation is no rate hike.

you can straddle it if you want to - just in case they shot each other.

Only one suggestion comes to mind. Watch / listen to the financial news. The news will tell you what the market will do and give you the best on market direction.

This is the only way I trade fundamental announcements.

Well, the consensus is no hike this round. Everyone kind of expecting that based on the current data. Not sure if it will create any ripple though. Can anyone recall what happened to the market previously when no hike was announce ? I haven't traded this news that often. This is my 2nd time. Thanks

At present I see a weak USD and either the BoE will leave the rate unchanged (most likely outcome) or will increase it. Thus, if I were trading the BoE news, which I am not, I would put in an order for a long position with an entry at 20 pips above the pre-announcement price.

As for me, I am long on cable based on the weak dollar, and the fact that whatever is likely to happen with the BoE will have no effect on what will happen to cable or will increase the movement which I anticipate based on the performance of the USD. I do not see much sense in a straddle in the current circumstances but, of course, that is just one person's opinion.

Good luck and good trading.

long on the cable is not a good idea at the moment as the Tony Blear is going though a crises he is likely to make a statement today

8 members of parlement resigned yesterday

No change in rate. No trade. Look out for Tony Blair statement later today

Looks like another delayed reaction.

Not sure the drop is because of the BoE or other factor. Anyway, did get +10 pips from that since there is a bearish trend line for GBP at this moment. Will watch out for the Blair's statement later today

yeah no kidding! slow motion trading agian! i swear it was at least 40 seconds before the market reacted, very weird.

A weird thing happened today on BOE. I noticed a 30 pips difference in prices on different MT platforms. SBFX showed a price of 1.8786 while alpari showed a price of 1.8750. I'm pretty sure alpari has the right price, cause I checked with different broker.

I sold gbp at 1.8786 on SBFX and got filled while alpari had a price of 1.8750 on their MT. SBFX has been having a ton of problems lately, this just adds to it. They really should work on their platform and servers. Too many gaps in prices lately and now this.

Well, I went with 3 lots. Entered at 8791. Took all three lots out at +24 pips.

Again it had a delayed reaction to the NO HIKE decision. But the GBP should be weak today because of other factors.

DC