The BoE left policy unchanged, as expected in today’s policy decision. The British Pound (GBP) is slightly firmer following the decision, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
BoE keeps rate unchanged
«Policymakers were again divided on the decision, but the 8-1 vote was a bit clearer than the 7-2 expected by markets. Swaps are pricing in a small amount of BoE easing risk over the rest of the year. Governor Bailey said the BoE should be able to cut rates ‘gradually’ over time. There is no press conference today, but the governor and MPC member Mann will speak tomorrow.»
«The British Pound (GBP) is slightly firmer following the decision and split vote, but gains through the low 1.33s take Cable to its highest level since March 2022. The GBP is finding firm support on weakness towards the 1.3150 area and has bounced strongly from yesterday’s late session to retest the 1.33 area.»
«The GBP is maintaining a steady trend appreciation against the USD, supported by a bullish alignment of the trend strength oscillators on the short, medium and long-term charts. Key resistance lies at 1.3330 (long-term retracement) before a return to the 1.35/1.40 zone.»
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
