FX.co ★ Trading plan for 14.09.2017

Today we are waiting for an extremely busy day. First, there will be the meeting of the Bank of England on monetary policy. And if more recently it was believed that the number of supporters of the rate increase will remain unchanged, there is now a hope that their number will grow then following the acceleration of inflation to 2.9%. Indeed, with such inflation, to keep the rate at 0.25% is not just strange, but also risky. If the increase in the refinancing rate is not two, but three votes, the pound will receive an excellent incentive for growth. Otherwise, it will be finally understood that the Bank of England does not intend to take into account the macroeconomic realities and will continue to adhere to super-soft monetary policy. This will have a negative effect on the pound.

One and a half hours after the announcement of the results of the meeting of the Bank of England, there will be data on inflation in the United States. It is projected to grow to 1.8%. However, despite the fact that yesterday's data on producer prices were slightly worse than forecasts, their growth rates still accelerated to 2.4%. So there is a chance that the inflation data will be better than the forecasts. Practically in any case, the growth of inflation will allow the dollar to strengthen. Only a slowdown in inflation can cause adjustments.

The EUR/USD pair reached a periodic level of 1.1880 after the impulse downward movement, reducing volatility within it. It is possible to assume that the quotation will try to find support, forming a stagnation within the limits of 1,1850 / 1,1880, where, in case of a clear fixation of the price above the mark of 1.1900, it is possible to assume further movement to the value of 1.1950.

The GBP/USD pair may first rise to 1.3250, and then fall to 1.3200. If the Bank of England does not justify the market's hopes, then the pair will fall to 1.3150. Only weak inflation data in the US will be able to hold the pound.