The Bank of England lowered the rate to 0.25%, and the forecasts.
The Bank of England has lowered the forecast for next year from 2.3% to 0.8%, for 2018 from 2.3% to 1.8%. Investors weren’t able to go against this monetary pressure, and the pound collapsed by 217 points.
In the US, the volume of factory orders showed a decrease of 1.5% in June. The reduction is appreciable enough despite the worse prognosis -1.8%.
On Friday, the key event will be the publication of the US labor market data.
The Non-farm payrolls data is projected at 180K in July after 287K in June. The unemployment rate is expected to decline to 4.8% from the current 4.9%. The average hourly earnings are expected at 0.2%, which can significantly strengthen the US dollar.
We believe that the key yesterday event was the point of reversal, and expect the pound at the 1.2950 area in the near future.
How to trade binary
The short-term upward movement is possible in the range of 1.3161 - 1.3213. The correctional downward movement is expected in the range of 1.3060 - 1.2998. We would buy call options if the pair rises above 1.3161. We would buy put options if the pair falls below 1.3060.
Expiry time: 20:00 GMT