Look Forward at the Forex Market – Week 4

Although the market was disappointed about the Monetary Policy Committee (MPC) vote, many analysts still feel that the UK will be the next of the developed nations to raise interest rates so long as the good data continues.

The first sign that a rate hike is coming will be when there is a split in the MPC vote and some of the committee start to strike a more hawkish stick. This is likely to maintain the bullish nature of the pound, especially against the weaker currencies, although expect sharp retracements when data disappoints.

As always, look for clear technical setups to go alongside the overall fundamental picture.