GBP / USD drops to 1.3700 after the latest news from the BoE

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  • GBP / USD posted modest daily losses early in the US session.
  • BoE announced that Chief Economist Haldane will step down in June.
  • The US dollar index remains in the red after the CPI data.

The pair GBP/USD it came under modest downward pressure in the first US session and fell to a daily low of 1.3695. At time of writing, the pair was down 0.15% on the day at 1.3720.

GBP / USD remains on the defensive despite broad USD weakness

Data released by the US Bureau of Labor Statistics revealed that the Consumer Price Index (CPI) in March rose to 2.6% annually from 1.7% in February. In addition, the annual core CPI, which excludes volatile energy and food prices, rose to 1.6% and exceeded the market expectation of 1.5%. With the initial reaction, the US Dollar Index fell towards 92.00 and allowed the GBP / USD pair to advance to the 1.3750 zone.

However, after the Bank of England (BoE) announced that Chief Economist Andy Haldane will step down from his post and leave the Monetary Policy Committee (MPC) after the June meeting, the British pound lost its strength.

Reflecting the negative impact of this announcement on the GBP, the EUR / GBP jumped to its highest level since late February at 0.8713 and was last seen gaining 0.34% at 0.8695.

There will be no further release of US macro data for the remainder of the day and the pair could struggle to regain its traction given the lack of interest in the British pound.

Technical levels

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