BoE expected to cut rates to 3.50% in March – Reuters poll

💡 DMK Insight

A potential 25-basis-point rate cut from the BoE could shift market dynamics significantly. Traders should be aware that such a move might not only impact GBP pairs but also ripple through equities and commodities. If the BoE follows through, expect volatility in the forex market, especially for GBP/USD and EUR/GBP. Watch for key resistance levels around 1.40 for GBP/USD and 0.85 for EUR/GBP, as these could be pivotal in determining the next trend. Additionally, monitor the broader economic indicators leading up to the meeting, like inflation and employment data, which could sway the BoE’s decision. The flip side is that if the cut is already priced in, we might see a ‘buy the rumor, sell the news’ scenario, leading to a potential reversal in GBP strength post-announcement. Keep an eye on market sentiment and positioning ahead of March; it could provide clues on how traders are interpreting the BoE’s intentions.