Today in forex news the Bank of England base rate remained unchanged. The Monetary Policy Committee voted 8-1 to keep interest rates unchanged. The announcement came today at 1200 GMT. The Monetary Policy Committee (MPC) also signaled that interest rates would remain low and steady. The central bank also lowered its economic growth forecasts.
The Bank Of England Base Rate news today caused the British Pound (GBP) to sell off, and this news impacted forex traders. The GBP/NZD sold off, due to some NZD (New Zealand Dollar) strength in the market. The GBP/NZD is hitting session lows at 2.2950, the overall sell off was nearly 400 pips, which is a very strong intraday selloff. The GBP also dropped against the USD, and this pair is down to session lows of 1.5120. You can see the strong selloff on the GBP/USD on the chart below.
Traders could have profited nicely after today’s news. Both sell trades on these two pairs look like short term/intraday sells, we expect the GBP/NZD to reverse back up based on the larger trends in the market. This pairs sold off but it is not trending down on the larger time frames. The GBP/USD also sold off, but this pair is still ranging up and down, so we would scale out lots or exit completely on any short term/intraday trades. The trading system you see above is The Forex Heatmap®, which provides live buy and sell signals for the GBP pairs and 7 other currencies, and 28 pairs total. The Bank of England Base Rate news, or interest rate news on any currency is one of the criteria used for forex market fundamental analysis for any currency. Interest rates drive currency price movement and trends. Monitoring forex news is part of any great trading system.