BOE Up NextThe Bank of England March rates meeting will be the main economic focus today. The bank is widely expected to raise rates by a further .25% in a bid to curtail soaring inflation. However, the current UK rates market pricing reflects a 60% probability of a .5% hike which, if delivered, would push the BOE into the front of the pack as the most hawkish central bank in the G10 bloc.The UK, as with the rest of the world, has been battling the recent energy crisis and supply chain crisis along with the amplified impact of the war in Ukraine. While the rate decision today will be important in itself, the market will also be focusing on the bank’s forward guidance and latest set of projections. We saw the Fed upgrading its rate path projections yesterday and the BOE is likely to follow suit today, meaning GBP has plenty of upside risks into today’s meeting.Where to Trade the BOE Meeting?GBPJPYWill it be fourth time luck for GBPJPY? The pair has been ranging within a triangle pattern over the last six months and price is now once again heading up to test the triangle top and the 157.88 resistance. If the BOE comes out all guns blazing today and GBP takes off, look for a break of 157.88, targeting 159.98 initially
Source: Tickmill
