- The dollar continues to advance on all fronts, DXY reaches 91.50.
- In short, Bank of England decision, then US data.
GBP / USD extended the slide and reached 1.3568, the lowest level since January 18. Then he had a modest rebound without recovering 1.3600. It remains with a clear downward bias in the previous statement with the decisions of the Bank of England (BoE).
The main factor behind the GBP / USD decline remains the strength of the dollar. The greenback, supported by the latest US economic data, rising yields and expectations for the stimulus plan of the Biden administration, continues to rise.
The dollar index (DXY) rose to 91.50, the highest level since December 2. On Thursday, the rise in the greenback is also taking place against emerging market currencies.
The Bank of England is coming
No changes are expected from the central bank in regards to interest rates and the purchase program. The focus is possibly on mentions of the possibility of introducing negative rates in the future. If it is understood that it is something very possible, then the pound could go back; if discarded, it would be a positive factor.
After that, the economic calendar shows the weekly report for US unemployment benefit orders, which will then be followed by the December factory orders report. The chairman of the Dallas Federal Reserve, Robert Kaplan and of the San Francisco Fed, Mary Daly will speak in public.
Technical levels
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