Daily Alert – Thursday 5th August 2021: All eyes on the Bank of England

Mark NugentAugust 2021, Daily Alert

Daily Alert – Thursday 5th August 2021: All eyes on the Bank of England

The markets have been very quiet all week. The most significant move has been the fall in oil, down almost 8 percent since the Sunday night open. I have placed long pending orders on every daily candle. I have yet to be triggered into a trade as prices continue to slide.

All eyes are now focused on the Bank of England at noon today, UK-time. There is concern that post-pandemic growth may be short-lived rather than sustained. A major issue is the soon-to-end furlough scheme and what that may mean in terms of unemployment. The markets expect a 0-1-8 vote split on the interest rate (that’s no votes for an increase, one vote for a decrease and 8 votes for no change). If we see more votes for a decrease that will hit the pound. It is unlikely that there will be any change to QE as the Bank has previously stated that rates need to be 1.5 percent before tapering will be considered. The rate is currently 0.1 percent and may go down before going up. In fact, the Bank has asked all institutions to be ready for negative rates should that be required. Today’s meeting could well be very interesting.

I’ll be back on Monday. Have a great weekend when it comes.

VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE