MetaTrader 4
Vertex FX 10

The UK Government Attemps To Jump Start the Economy and Traders Await Mario Draghi


The UK government is attempting to reignite the economy with a plan to relax planning rules, to allow businesses and homes to expand and improve their properties. The expectation is that this supply side policy will help remove the bureaucracy and begin growth for the UK economy.  

Bank of England (BoE) announces interest rates and its asset purchase plan at 12pm (London). The benchmark interest rate is expected to be left unchanged at 0.5% and the asset purchase facility held at £375bn. If the announcement diverts from the expected, there could be considerable volatility in cable. Also be aware for the potential of the PBOC to cheekily announce at the same time as the BoE, which they have done recently, catching many traders off guard.

The European Central Bank (ECB) announces their interest rate at 12:45pm (London).  Following the announcement traders will be awaiting ECB president.  If yesterday’s rumour that Mario Draghi will announce a policy for “unlimited but sterilised bond buys” is accurate, then he will tell the market what they already know.  Politically how the ECB move forward from here will have longstanding consequences, straight after the rumour of “unlimited, but sterilised bond buys,” Angela Merkel stated she supports Draghi and Bundesbank’s Weidmann who opposed ECB plans.  It is thought she will accept bond purchases, but not in unlimited size.


China’s top economic planner announced on Wednesday the approval of 25 new urban rail and intercity transits ($127billion) investment to jump start the economy – China Daily

US Judge dismisses RBS investors – The Daily Telegraph

OFT launches investigation into the price of petrol at UK pumps – CityAM

Fitch affirmed Canada’s AAA rating, outlook stable

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