UK MPC MINUTES

NEWS TRADING
Wednesday April 18, 2012
[4:30am NY Time

MPC Meeting Minutes is scheduled to be released today and
since it´s customary for BOE (Bank of England) not to
release a statement along with its interest rate decision
(2 weeks ago) if there were no changes to either rate
decision or APF (Asset Purchasing Facility, UK´s
quantitative easing program); today will be the first time
for a glimpse into what took place during this meeting, here
is the forecast:

4:30am NY Time UK MPC Minutes
Forecast 0-0-9 Previous 0-0-9
ACTION: N/A





The MarketBank of England decided to keep its monetary policy unchanged during the last meeting, along with its current APT facility. With most major central banks sitting on the sidelines adopting a wait-and-see approach, I believe there may not be a surprise today with today’s MPC Minutes release… However, if MPC decided to discuss increasing the APT further, then we may see some weakness in the GBP today…  Recent CPI release showed steady inflationary pressure, but with the Employment component of the economy likely to fall, BOE may be more inclined for further easing…


The Trade PlanWe will be looking at the vote count today but because of the current economic situation in UK and the uncertainty of the overall market view on Sterling, I’d recommend to sit on the sideline or follow me in the traderoom to trade this release. Due to the nature of this release, you need to have a newswire or audio service in order to trade it. If we see a steady market reaction after the release, it may very well carry over to the NY Session, therefore I’d wait for 5 minutes before even deciding on a trade. If market moves steadily, then I will use the double-fibonacci method and follow that trend.


Additional Thoughts
It is my opinion that the outcome of this meeting will have profound effect for GBP, if we get a strong surprise. Therefore I’d stay out of the market until then.

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