ING economists analyze how the Bank of England (BoE) meeting could affect the British Pound (GBP).
Unchanged forward guidance may help Libra
We do not expect the BoE to change its monetary policy today. And assuming the Monetary Policy Committee voting pattern remains the same as in February, 2 (rise), 6 (unchanged), 1 (cut), GBP/USD should hold firm and perhaps reach resistance in the 1.2850/1.2900 zone. We doubt that one of the votes in favor of an increase that changes to a unchanged position will have to affect the Pound.
The above scenario suggests that EUR/GBP could retest the main support at 0.8500. However, we maintain the view that this should be the base in the medium term and that EUR/GBP will rise gently throughout the year once the BoE begins to draw up its easing plans in the coming months.
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.
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