As expected, the Bank of England (BoE) today kept the interest rate at 5.25%. Economists at TD Securities report that the British Pound (GBP) doesn't have much to hold on to, although it has stabilized a bit from session lows.
It's not just about the BoE today for the GBP
As expected, the Monetary Policy Committee (MPC) voted to keep portfolio values at 5.25%. The 1-6-2 vote was a surprise, but with the usual suspects voting in their usual camps, it should not be interpreted aggressively. The Monetary Policy Committee's guidance was renewed to a neutral position, and data is in the driver's seat in the coming months.
There is not much for the GBP to hold onto as far as the BoE is concerned. Attention remains focused on the USD and the Fed, where we continue to expect a cut in May. However, the forex market is highly data dependent, so the focus is on NFP and upcoming inflation data.
We would try to fade the USD move, especially if Friday's NFP offers good growth and moderate wages, which would lift the GBP.
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.
