- Libra among the top performers on Thursday after the BoE.
- The US dollar plummets despite rising US yields.
- GBP / USD is having the best day in weeks.
The GBP/USD it continued to rise during the American session and reached the 1.3749 level, the highest figure since last Friday. The bullish move was supported by a decline in the US dollar across the board.
The dollar weakened after the release of US economic data that came in below expectations and amid risk appetite. US stocks are rising strongly, with the Dow Jones climbing 1.50% and the Nasdaq 0.90%. The bond sell-off is not helping the dollar (only against the JPY). The US 10-year yield reached 1.41%, the highest level since July 14.
The fall of the dollar added fuel to the rally in GBP / USD. Previously, the pair tested monthly lows near 1.3600 and then began to rebound, initially driven by a stronger pound, which is still among the top performers on Thursday.
The Bank of England, as expected, left monetary policy unchanged. The BoE mentioned that conditions appear to have strengthened the case for a modest adjustment. “A new twist was the ability to raise rates before completing the asset purchase program. This would confuse the markets, flexing and adjusting at the same time! We still see the first movement in 3Q22, ”commented analysts from Societe Generale.
The pound was supported by the meeting of the Bank of England and also by the sharp decline in the EUR / GBP which again fell below 0.8550.
Technical levels
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