Wednesday, November 5, 2008

central bank action in europe

Big day tomorrow with both the BoE and the ECB due to make interest rate announcements. Both banks are expected to cut by 50 bps. The ECB will probably not surprise anyone and I expect a 50bps cut. However, the BoE is not so cut and dried. A lot of commentators are calling a 75bps cut with some suggesting a full 1%. I'm planning on monitoring EUR/GBP and doing nothing if the BoE cuts 50 and looking for a quick in and out buy if it 75 bps+. I am going to check the situation an hour or so before the BoE move (12:00 GMT) and may modify my plan then. I'll keep this blog posted.

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