Bank of England hikes to 4%, sterling unable to sustain rise
The Bank of England raised its key rate to 4%, with sterling nearly unchanged on the day. The dollar was mixed, and U.S. futures were mixed as chip stocks…
Today's sole major expiry is EUR/USD at 1.1200, while a larger one at 1.1265 with €4.1 billion looms for tomorrow.
Only one key expiry level stands out for today's session.
That expiry is for EUR/USD at 1.1200, where the strike is about 30 pips away from the current spot. If price action drifts lower during the session, these expiries might attract attention and could help anchor price around 1.1200 toward the cut.
However, broader market direction will mostly be set by Treasury yields and dollar sentiment. Therefore, expiries alone are unlikely to produce a sustained move.
Aside from that, today's board has little else, but a large expiry for EUR/USD at 1.1265 is worth watching. That level already has €4.1 billion in interest, making it sizable. So, the 1.1265 mark could become a focal point as tomorrow's cut approaches.
Yet, today's price action will first need to be observed, and that will likely hinge more on events in the bond market and overall dollar sentiment.
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The Bank of England raised its key rate to 4%, with sterling nearly unchanged on the day. The dollar was mixed, and U.S. futures were mixed as chip stocks…
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