- The Bank of England is holding monetary policy unchanged, with limited impact on GBP.
- EUR / GBP is heading towards the lowest close since April.
The EUR/GBP it fell to 0.8490 during the American session reaching the lowest level since early April. It then rebounded modestly to the upside, hovering around 0.8500.
The pound is still unable to make a clear break below 0.8500. If it does materialize, a test of the year-to-date low at 0.8471 looks likely. The negative bias remains intact. Any bounce below the 20-day moving average at 0.8545 should be viewed as corrective.
The downtrend continues after the BoE
On Thursday, as expected, the Bank of England kept its monetary policy unchanged. There was a dissenter: Michael Sauders, who voted to stop QE early. The BoE mentioned that global inflationary pressures are stronger but transitory.
“The big news is that the Bank of England could start reducing the amount of government bonds it owns once rates hit 0.5%, so potentially in mid to late 2023. The threshold change is not Too surprising, but the finer details possibly point to a faster easing than expected, ”ING analysts wrote.
Technical levels
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
