forex Bank of England’s Latest Interest Rate Decision

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Bank of England announced on Thursday, November 7^th to hold the interest rate at 0.75%, which is much in line with previous market expectation. Less than 6 weeks away from December’s snap election, opinion polls may be more significant than data and monetary policies. If the Tories can secure a majority of votes and Prime Minister Boris Johnson’s Brexit deal won the support of most members of the Parliament, the pound sterling is much likely to go up.

Statistics from US Commodity Futures Trading Commission (CFTC)shows that for the week ending October 29^th,leveraged funds betting on the pound sterling reduced $2.606 billion in short positions of the pound, a six-month low.Most corporations are hedging risks from the interest rate with bonds and are shorting the pound sterling, which remains one of the most undervalued currencies in developed countries.

Source: WikiFX App