- EUR / GBP rally capped at 0.9065, returns to 0.9000.
- The pound recovers after the monetary policy decision of the Bank of England.
The rebound of the euro From the low of 0.8945 it hit resistance at the 0.9065 area in the European session on Thursday and the pair has traded lower since then, returning to levels above 0.9000 and turning negative on the daily charts.
The pound recovers after the BoE decision
The pound has made up lost ground despite the Bank of England’s decision to increase its bond purchase program by £ 150 billion, raising the overall target to £ 895. Although the bank has signaled more support, the QE rise has been less than the £ 200bn suggested by some market reports, while the issue of negative rates has been shelved.
The common currency jumped higher on Wednesday as EUR / USD rallied after the blue change in the US presidential election. Biden’s lead over Trump in the race for the White House fueled appetite for the risk of increasing demand for the euro in the face of a weaker US dollar.
In addition, the British pound was affected by the stagnation in the Brexit negotiations after the representative of the United Kingdom, David Frost, reiterated that the positions are still far away on key issues. This has dampened hopes of an imminent trade deal, although talks are expected to continue in London over the weekend, keeping the doors open for a last-minute deal to avoid a messy exit and keep the pound from falling further. .
Credits: Forex Street
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