With Federal Reserve's decision done and dusted, the focus today is going to be on the Bank of England's Monetary policy meeting, which will be taking place today.

The bank will announce its monetary policy decision at 12:00 PM London time, and it is widely anticipated that BOE will have no choice but to follow in the footsteps of the Fed and hike interest rates once again.

However, market players aren't expecting an interest rate hike of 75 basis points from the BOE as the bank doesn't have the same flexibility as the Fed. What is anticipated is an interest rate hike of 50 basis points and nothing more than that.

This is because the UK is facing a serious deprivation situation. The GDP numbers are shrinking, according to the latest numbers, and they are falling at the fastest pace in more than a year.

Traders are worried higher inflation and aggressive monetary policy adopted by the BOE is going to take much bite out of economic growth in the coming months as compared to what we have now, which is already showing a dire situation for the UK.

According to the latest figures, the UK's wage growth is slowing, and the unemployment rate is rising.

The British pound is likely to be highly volatile against the dollar especially, and the path of the least resistance is skewed to the downside.