The Bank of England decided to sit tight, holding the benchmarket interest rate at 0.50% and the Asset Purchase Program at £375B. The latest addition to this QE program was on July 5, when the bank added £50B to it.

There is a sense that the bank needs to do something with the GDP for Q2 estimated to be -0.7%, a third contraction and therefore extension of the current recession. Inflation has also come down a lot, to an annual pace of 2.4%.

Markets are not reactive to this non-action by the BoE. The ECB is due to announce policy at 7:45AM EDT, followed by Draghi’s press conference that starts at 8:30AM EDT.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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