The cable expects the Bank of England meeting today
The UK industrial production showed an increase by 0.3% vs. 0.5% in April. The manufacturing production showed an increase by 0.1% vs. 0.3%.
In April, the US budget surplus was lower than forecast: 106.5 billion against 116.2 billion dollars.
As a result, the pair GBP/USD peaked at 1.4488 but closed trading at around 1.4443.
Today the meeting of the Bank of England will be held. We will get the minutes of the meeting and hear the speech of Mark Carney. However, we tend to expect the soft comments from the head of the Bank of England today.
The United States will present data on the jobless claims, exports and imports data. It’s also worth to pay attention to the performance of two representatives of the Federal Reserve. We assume that they will be cautious in their statements.
How to trade
We expect the short-term downward movement in the range of 1.4419 - 1.4385. The short-term upward movement is possible in the range of 1.4462 - 1.4536. We would buy put options if the pair falls below 1.4419. We would buy call options if the pair rises above 1.4462.
Expiry time: 20:00 GMT