In addition to the Fed, the meetings of the central banks of Japan and Great Britain will also take place this week. The pound received some support after the publication last Friday of positive macro statistics. In January, British GDP rose from -0.2% to +0.8% (+10% year-on-year, from 6.0% in December), which also turned out to be much better than economists' forecasts. All major sectors of the economy increased. The service sector - by 0.8%, the manufacturing sector - by 0.7%, the construction sector - by 1.1%. Nevertheless, economists believe that GDP growth may be seriously reduced in the near future, as the economy is under pressure from the consequences of the military conflict in Ukraine. In the meantime, the ongoing recovery of the UK economy speaks in favor of a further increase in the key interest rate, given the strong rise in inflation in the country. The decision on interest rates of the Bank of England will be published on Thursday at 12:00 (GMT). It is expected that at this meeting the Bank of England will raise interest rates again (to 0.75%), while maintaining the volume of purchases of government bonds at the same level of 895 billion pounds. However, despite the fact that very positive macro data is coming from the UK, the interest rate may also remain at the same level of 0.50%, given the situation in Ukraine.
Support levels: 1.2950, 1.2680, 1.2400
Resistance levels: 1.3075, 1.3124, 1.3190, 1.3275, 1.3373, 1.3390, 1.3430, 1.3535, 1.3640, 1.3700, 1.3745, 1.3900, 1.3970, 1.4000
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