EUR/GBP: BoE testimony could shift rate path – ING

💡 DMK Insight

Parliamentary testimony from Bank of England policymakers is about to shake up Sterling trading. With Chris Turner at ING highlighting a potential March rate cut, traders need to pay close attention to the tone and content of these testimonies. If policymakers hint at dovish stances or express concerns about inflation, we could see Sterling weaken significantly. This could trigger a sell-off, especially if the market perceives a rate cut as imminent. Watch for key levels around recent support and resistance zones for GBP/USD, as these could provide critical entry or exit points. The broader market context suggests that any dovish signals might not only affect Sterling but could also ripple through related assets like UK government bonds and equities. On the flip side, if the testimonies lean towards maintaining rates or a hawkish outlook, Sterling could rally, catching many traders off guard. So, keep an eye on the testimonies and be ready to adjust positions based on the sentiment expressed. The immediate timeframe is crucial; these testimonies could lead to volatility in the next few trading sessions.