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BoE Minutes next: impact on GBP/USD, EUR/GBP, GBP/JPY

FXstreet.com (Barcelona) - The BoE minutes will be the main event for the UK on Wednesday, with market consensus ruling out any changes in both the Gilt purchases and the refi rate. “With Carney taking over as Governor in July, we could see some or all of those who had previously voted for QE advocating for policy on hold for now, until they assess in which direction the new Governor will want to take policy”, assessed Alvin Pontoh, Strategist at TD Securities.

The bullish attempt on Tuesday faltered in the vicinity of 1.5190. The sterling then initiated a correction lower that dragged the cross to the current area of 1.5150, as the selling interest was shaping up. Initial resistance lies at Tuesday’s highs at 1.5190 ahead of the 55-day moving average at 1.5255, while support levels align at yesterday’s low at 1.5113 followed by 1.5034, low April 4.

“With dollar gaining ground against most rivals, a break below key support at 1.5130, 61.8% retracement of its latest daily bullish run, should signal a stronger bearish movement, with 1.5070 as next bearish target for today”, suggested Valeria Bednarik, Currency Analyst at FXstreet.com.

Flash: UK heads up European focus again today - BTMU

Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that the focus from Europe today will be on the UK with the release of the retail sales report and the minutes from the MPC meeting held on 8th-9th May.
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