BOE interest rates decision with Valeria Bednarik

Read full BoE Meeting coverage we held on July 10th 2008.

BOE interest rates decision with Valeria Bednarik

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11:35

FXstreet.com -  Good morning, good afternoon or good evening to everyone all over the world. Welcome to today's Special Live coverage Live from FXstreet.com Homepage and Calendar. Today we will be performing the live coverage of BoE Interest Rates decision which will be released in about 25 minutes, at 11:00 GMT, 07:00 EDT.

11:35

FXstreet.com -  The Bank of England will announce today its monthly monetary policy decision among serious concerns of a fast rising inflation plus serious fears of economic recession. According to most analysts, the BoE will, most likely, leave its benchmark lending rate at the current 5%, which to provide some breath to a weakened housing sector, as it will provide some support to struggling homeowners and potential buyers.

11:36

FXstreet.com -  What do you think? Vote the poll!

11:36

[Poll]

What do you think the BoE will announce on Interest Rates? 5.00 ( 50% ) 5.00 ( 14% ) 5.25 ( 32% ) 5.50 ( 5% ) > 5.50 ( 0% )

11:37

FXstreet.com -  As a special guest today, to give you the key comments, before, during and after this event, we will have here with us Valeria Bednarik.

11:37

FXstreet.com -  Valeria is the author of The Advisor blog at FXstreet.com. You can read his comments and subscribe to the blog's feed.

11:37

FXstreet.com -  The Advisor Blog by Valeria Bednarik

11:38

FXstreet.com -  But before welcome valeria, I would like to remind you that the Early Bird Discount for the International Traders Conference - Barcelona - October, 29-31 2008 ends on July 15th, less than a week away! Don't miss the most interactive Forex Event of the year. Register now and save 200â�¬!

11:39

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11:39

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11:39

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11:41

FXstreet.com -  20 minutes left for the release of BoE Interest Rates decision... Let's review some of the news and reports that FXstreet.com contributors and editors prepared for the event!

11:41

FXstreet.com -  * Friday Notes - We expect the BoE to leave the repo rate on hold in July by HVB Group

11:41

FXstreet.com -  UK gilts higher on weak housing market surveys ahead of BoE rate decision (Thomson Financial News)

11:42

FXstreet.com -  Forex Analysis on Majors - BoE will possibly leave Repo Rate without changes today by Forex Ltd

11:42

FXstreet.com -  Daily Forex Technical Report - BoE & Bernanke Awaited by ActionForex.com

11:42

FXstreet.com -  BOE interest rate announcement - traders are becoming tense... by Dr. S. Sivaraman

11:43

FXstreet.com -  You can read some of these news and reports or read what Valeria Bednarik preview for this BoE decision...

11:43

Valeria Bednarik -  Hi! hello everybody! welcome to this live coverage! Rates in England, are quite funny, because not always market reacts when like in this case, rates are expected to be unchanged.

11:43

FXstreet.com -  Welcome Valeria! What do you expect for the event today?

11:44

FXstreet.com -  Valeria is the author of The Advisor blog at FXstreet.com. You can read his comments and subscribe to the blog's feed.

11:45

Valeria Bednarik -  But not always, does not mean ever. I believe that if rates are in fact unchanged, market could understand that in fact England is unable to cut them for a while, produccing a rise on GBP against rivals

11:45

FXstreet.com -  The Advisor Blog by Valeria Bednarik

11:46

Valeria Bednarik -  As the rates are announced alone, with no Minutes (that will be release in 2 weeks from now) we are deppending on market interpretation and first reaction to define where the Pound cound move next

11:47

FXstreet.com -  If you have any question before the event release, please send them now and we will try to answer them.

11:47

Valeria Bednarik -  A quick reaction could send the pair up or down, to two key points: to the upside the zone aroudn 1.9830; to the downside, 1.9670

11:48

Valeria Bednarik -  a break of any of those points, agaisnt dollar, will define GBP trend for the next days I think

11:48

[Comment From IRANKW] How about eur ?

11:49

Valeria Bednarik -  Euro reaction will depend on GBP reaction: a strong movement in this last one, will surely give some impulse to Euro in the same direction, altough with not the same strength

11:49

[Comment From Jay] Hi Valeria, I believe the BoE will be unable to cut rates for a good while considering the poor economic data of recent weeks, and while they will attempt to remain hawkish about inflation as well, they seem to have little room for manouvre, do you agree?

11:50

Valeria Bednarik -  Yes! thanks Jay that's the exact situation... in spanish we say between the wall ant the sword... and that is how England is. However is hard to predict what the reaction will be, until the info is published

11:52

[Comment From Jay] In england we say 'between a rock and a hard place'!!

11:52

[Comment From hal] is there any possibility BOE will cut the rate?

11:52

[Comment From kbc] they dont raise interest rates due to inflationary pressure heighting

11:52

[Comment From ikeo] Srely I agree.

11:52

Valeria Bednarik -  Posibilities, are 3 a cut, a raise, a not move... discard the raise... the other two have more  yet as jay say, is not that easy to see more cuts Â

11:53

[Comment From martin] which direction wil the EUR go not the same strength?

11:54

[Comment From ikeo] I rather think the bank may increase the rate by 25 basis points to jolt the markets into their senses.

11:54

Valeria Bednarik -  Euro will go the same direction GBP .. usually does at least... however it could not react at all we will be seeing charts at the same time, in Euro we have to the downside, 1.5670 zone: under that Isee it falling. Above 1.5730 will again run at least to 1.5760

11:55

Valeria Bednarik -  Ikeo, a raise is not expected at all, however, England always gives us interesting surprises regarding rates. As i say is the one with less chances... but of course it can happen.

11:55

[Comment From hal] if BOE maintain the rate, will the high volatlity happen to G/U chart?

11:56

FXstreet.com -  Only 5 minutes left!!!

11:57

Valeria Bednarik -  Hal sorry what is G/U?

11:57

[Comment From emmanuel] Hi Valeria tanks for participating in the live coverage the other day on ECB rate decision

11:57

[Comment From hal] gbp/usd pair. sorry

11:58

Valeria Bednarik -  meaning GBP dollar?   ok no problem remember I'm not an english native! I wish i could know exactly and tell you where to go. I always prefer to wait 5 10 minutes and then the picture will be clearer..

11:58

Valeria Bednarik -  Thans Emmanuel

11:59

FXstreet.com -  BoE Interest Rates decision will be published on Bank's website

11:59

FXstreet.com -  BoE oficial site

11:59

[Comment From Guest] plz tell me about for gbp/usd

11:59

[Comment From emmanuel] gbp/usd and eur/usd has been consolidating within 150 pips range

12:00

FXstreet.com -  Just one minute left

12:00

Valeria Bednarik -  first suppport 1,9710 under that, the pair could run to the downside. Above 1.9780 to the upside

12:00

FXstreet.com -  ON HOLD!!

12:00

Valeria Bednarik -  Emmanuel ranges as last weeks.. boring.

12:00

FXstreet.com -  BoE announced Rates keep the same!

12:00

Valeria Bednarik -  No changes so far no great reaction...

12:01

FXstreet.com -  Please, read the oficial data: http://www.bankofengland.co.uk/publications/news/2008/042.htm

12:02

FXstreet.com -  Val, How long should we wait until see any reactions to the announcemment?

12:02

Valeria Bednarik -  I believe the first 15 minutes candle

12:02

Valeria Bednarik -  could be decesive... sorry the spelling!

12:03

FXstreet.com -  First news arriving from our main news sources: Bank Of England Leaves Bank Rate Unchanged At 5.0% - Dow Jones

12:03

Valeria Bednarik -  let's see if we have some movements right now... if not, the announcement will be quite dissapointing and we will have to wait for the minutes to see a reaction regarding rates

12:03

Valeria Bednarik -  The decision is rates on hold no changes

12:03

FXstreet.com -  Mark de la Paz is holding a webinar now, analysing the markets  in real time. You can join by clicking here:  http://www.fxstreet.com/live/sessions/session.aspx?id=8a9c47a1-851a-47a2-9b74-090aa1c05f25

12:04

[Comment From Guest] plz tell me what the dicesion

12:04

FXstreet.com -  BoE decision has been to keep the rates on hold

12:04

[Comment From DAS] GBP will move towards 1.9800 slowly............

12:04

Valeria Bednarik -  Technically speaking the pair seems slightly bullish in smaller charts.. as long as 1.9700 remains intact, yes we can see it slowly running up. look at 1 hour charts... a candle reversion formation

12:05

FXstreet.com -  Please, send your questions and comments to Valeria. We will try to publish all of them and give answer to all your questions.

12:05

FXstreet.com -  The Advisor Blog by Valeria Bednarik

12:05

[Comment From Nick] I'm thinking the GBP/USD will fall steadily to 1.9700/710 before it resumes an upward trend, anyone else agree/ disagree?

12:06

Valeria Bednarik -  that is an interesting support zone yes Nick. A break bearish, a rebound bullish at least in the short term

12:06

[Comment From hezekiah] i already on eur/jpy seel what shoold i do

12:07

[Comment From Nick] thanks Valeria for the coverage and your comments.

12:08

Valeria Bednarik -  Hezekiah eur jpy is moving in ascendant long term channel... although Boe decision will hardly affect that particular pair

12:08

Valeria Bednarik -  You're welcome Nick.. a pitty market seems it's still slepping..

12:09

[Comment From emmanuel] i quite agree with nick bcos the pair has been bounncing off the 50% fib ret level at 1.9706

12:09

[Comment From DAS] BUY gbp above 1.9730..... target 1.9790,after 1.30 hours SELL again GBP target 1.9715

12:09

Valeria Bednarik -  so far the publication moved 10 pips for each side, without nothing else

12:10

[Comment From hezekiah] Valeria, you mean i shoul exit

12:10

Valeria Bednarik -  Hezekiah.. i don't know nothing of your trade... send me a mail later, and I will gladly help you with your position

12:11

FXstreet.com -  More pieces of news, now the one published by our editors:

12:11

Valeria Bednarik -  DAS... as long as the pair remains above 1.9730 yes its bullish.. and a probalbe target no doubts 1.9790. Stops should be placed under 1.9690

12:11

Valeria Bednarik -  however I can see the movement right now

12:11

FXstreet.com -  The Bank of England maintains its Bank rate unchanged at 5.00%

12:12

[Comment From pepa] how is the trend of GPB/USD after interest rate

12:13

Valeria Bednarik -  none! market is moving sideways... although in daily charts i see the pair tending bearish: if you place a Fibonacci from 2.006 to 1.9647, you cna see that the pair retraced the 61.8% (almost)

12:14

[Comment From TDK] Morning all, from chicago. Any 7:30 am economic data?

12:14

Valeria Bednarik -  and is pointing lower i believe a confirmation under the minimum could turn the pair bearish, but as Euro, they are moving sideways

12:15

FXstreet.com -  Hi TDK, later today in the US Session we have Jobless Claims data and Bernanake and Trichet's Speeches. Please, view our economic calendar for more info: http://www.fxstreet.com/fundamental/economic-calendar/

12:15

Valeria Bednarik -  No that i know TDK

12:15

[Comment From TDK] It seems to me, the key indicators (Fibonacci, Volume etc.) is what the big players look to exploit, and "puke out" the small investor.

12:15

Valeria Bednarik -  Thanks! fxstreet

12:15

FXstreet.com -

12:16

Valeria Bednarik -  TDK is a point of view, as all are. Gbp/usd is quite a  Â technical pair, and works for me.

12:16

[Comment From Guest] GBP/USD looks bullish to me

12:17

[Comment From emmanuel] Valeria pls shud one buy gbpusd on failure to break 61.8% fib ret level?

12:17

Valeria Bednarik -  yes as I said earlier, seems bullish in short term charts. but in bigger ones, its trying to turn to the downside.

12:18

[Comment From pepa] what about the euro

12:19

Valeria Bednarik -  buy on failure? sell on failure you mean? it depends on how do you trade... long term, short term? I believe the pair, has a strong resistance zone aroudn 1.9830..under the fibo level, around 1.9870... above those points, no discussion the pair is bullish

12:19

Valeria Bednarik -  Under 1.9710 chances turn bigger to the downside but till now... rates and market! is at least.. boring

12:20

[Comment From emmanuel] Valeria tanks very much

12:20

[Comment From TDK] What about the private small investor, who works hard to figure out a strategy, is it wise to share the knowledge, or is just prone only to hurt you? I understand talking and sharing market opinion is nice and all, but after all it is war out there.

12:21

Valeria Bednarik -  Pepa... i'm not watching Euro but is movig sideways too.. I already placesd some coments in my blog, and will place a longer term analysis of that specific pair, after we finish this live coverage... just give one hour!

12:22

[Comment From Guest] TDK, you're challenging the whole teaching theory.... your view applies to all fields.... depends on your personality i guess!

12:22

Valeria Bednarik -  TDK... a war out there.. hurt... I deeply respect any opinion...But i strongly believe in education and in technicals

12:23

Valeria Bednarik -  and if you really want to success in forex trading, live your feelings outside your desk!

12:24

FXstreet.com -  Interesting discussion today! In the meantime, more pieces of news coming from Dow Jones: UK Brown: Monetary Policy Alone Can't Combat Global Econ Woes

12:24

[Comment From emmanuel] Valeria pls does it mean that failure to take out this resistance and supports levels will turn the gbp/usd into range trading?

12:24

Valeria Bednarik -  if you saw the ECB Nonfarm Payroll coverage, despite the announcements were bad for dollar, euro fell 300 pip? 200?? and so did GBP... we managed all the coverage by technicall points! and it worked fine!

12:25

Valeria Bednarik -  Exacly emmanuel... you can trade the range.. an place stops around 15/20 pips outside them... a break could mean continuation.. if you ask me, use a fast stochastic in 4 hours charts... a good indicator for sideways markets.

12:26

[Comment From michael] i think the fire is off the announcement should we be looking towards the unemployment figures

12:28

Valeria Bednarik -  Nick... is frustrating for me too. michael you're right.. the announcement had no effects... I am seing previous GBP data from today Halifax HPY? quite dissapointing too..

12:29

[Comment From Guest] Valeria, a confirmation above 1.9755 (GBP/USD), means a 20 pips rally upwards?

12:30

Valeria Bednarik -  GBP needs to break today's maximum to run 20 more pips yes... and probably a bit more. What I see rthese days, is a lack of volume and strengh in majors.. at least the Europeans... reaction seems to be happening in slowmo

12:31

[Comment From pepa] and what do you think about Mr. Bernanke

12:32

Valeria Bednarik -  Mr. Bernanke.... speeches from the US never helped the dollar these last months... thinks seems to be changing a bit... if they continue claiming for a stronger dollar, and givving facilities to credit companies ](they had already extend their plant till 2009) we could see a painfull and slowly recovery of greenback

12:33

Valeria Bednarik -  the only "weak" currency is Japanese Yen, yet, it will stay between 105.00 and 110,00 not because dollar strenght or weakness, but because is where the Japanese goverment like it to be;

12:35

[Comment From pepa] and about Mr. Trichet

12:38

Valeria Bednarik -  Mr Trichet... I believe he is really worried about inflation, yet a rates hikes seems to be his only tool... i believe half Europe is quite "angry" with this policy..(maybe angry is not the exact word but you understand what i mean). Europe needs a change... a quick change i believe. The less hawkish last speech send Euro down a big number of pips.. Will he dare to repeat that? I can tell.. but if he does, he will be sending euro under 1,50really fast.. And of course this is just MY opinion

12:38

Valeria Bednarik -  I can not tell sorry!

12:39

FXstreet.com -  Time to wrap-up the Live Coverage today. Val, any advise or conclusion?

12:40

Valeria Bednarik -  Quite dissapointing market reaction and market movements so far, at least regarding BOE decision... dollar seems to be gaining some ground rigth now, against all rivals, let's see it it can continue during the American session.

12:40

Valeria Bednarik -  It has been a pleasure to be here with you all, sharing this hour! hope you enjoy it too... see you soon!

12:40

FXstreet.com -  I would like to thank you all your participation today. It has been a pleasure to be presenting this Live Coverage from FXstreet.com.

12:40

FXstreet.com -  Valeria, many thanks for your participation!

12:41

Valeria Bednarik -  thank you all!

12:41

FXstreet.com -  For all those who have enjoyed Valeria's Bednarik comments, I would like to invite you to read her weblog where you could read and post comments and questions.

12:42

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12:43

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12:45

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12:46

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