- Bank of England maintains monetary policy unchanged, reduces weekly purchases.
- The pound hit the market highs after an initial downward reaction.
The GBP / USD hit six-day highs following the Bank of England’s decision at 1.3940. Prior to this, the pair had fallen to 1.3855, from where it rebounded strongly.
The central bank, as expected, kept the interest rate and the purchase program unchanged. A vote for a reduction in the goal of the amount of purchases is highlighted. With regard to it, weekly purchases will be reduced, extending its duration from November to the end of the year.
The pound was favored by the events and was boosted on all fronts. EUR / GBP trimmed gains, returning towards 0.8650. The press conference of the central bank authorities will begin shortly.
The GBP / USD is trading at 1.3915, slightly above its level prior to the decision. The event in the BoE triggered great volatility in the pound crosses, which could continue ahead of the press conference, although it seems that the most relevant has already been mentioned.
Earlier the pound was trailing behind with GBP / USD moving in ranges, unable to be helped by dollar weakness. In the US, data on unemployment benefit requests will be published and several Federal Reserve officials (Williams, Kaplan, Bostic and Mester) will speak.
Technical levels
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