Britain Is More Likely to Cut Interest Rate

Recent survey shows Britains 10-year bond yield has dropped to 0.484%, the lowest since October 10th, 2019.

British economic growth has weakened while showing clear signs of overcapacity. In addition,

Britain‘s inflation remains lower than the central bank’s 2% target range, even falling to a 3-years low at 1.3% last December. Meanwhile, the country still faces uncertainties of Brexit.

Its expected that the Bank of England will make a dovish statement and cut the benchmark interest rate by 25 basis points to 0.5%. The momentum of economic rebound may subside in the second half of 2020, or even earlier, because the pressing deadline for EU-Britain trade deal will result in Brexit uncertainties that prevail the market.

GBP/USD daily pivot points 1.3008---1.3014

S1 1.2995 R1 1.3034

S2 1.2972 R2 1.3050