Swing Trades: GBP/USD, EUR/USD
|GBP/USD: BoE Interest Rate Decision
The British Pound fell sharply against the US Dollar, as the Bank of England announced its rate decision on Thursday. The GBP/USD exchange rate depreciated 27 base points or 0.20% to the 1.3419 mark, but managed to keep the position nearing the 1.3440.
A breakthrough in Brexit negotiations diminished the risk of a disordelry Britain’s quit from the EU and is likely to encourage corporate and household confidence, the Bank of England stated. The Central Bank’s policymakers voted to keep interest rates unchanged at 0.50%, in line with expectations, after raising them last month, as inflation growth reached its strongest level in almost six years, while unemployment rate remained very low.
EUR/USD: US Retail Sales
The US Dollar touched its weakest point against the Euro, following the stronger-than-expected retail sales report. The EUR/USD exchange rate rose 23 base points to the 1.1855 area, but reversed an upward trend to be seen trading below the 1.1800 mark.
The US retail sales expended more than anticipated in November, amid the brisk start of holiday season, suggesting that sustained economic strength could set the stage for further Fed’s rate hikes in 2018. The Commerce Department stated that the country’s retail sales increased 0.8% in November, following an upwardly revised 0.5% gain in the prior month, as households bought range of goods, while cutting motor purchases.
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