Pound Sterling edges lower amid the weaker USD
|GBP/USD remains under selling pressure above the mid-1.2700s, UK Retail Sales data eyed
The GBP/USD pair faces rejection near the 1.2700 mark and holds above the mid-1.2700s during the early Asian session on Friday. The downtick of the major pair is backed by the stronger US Dollar (USD) and the dovish tilt of the Bank of England (BoE). Investors await the UK Retail Sales for fresh impetus, which is expected to fall 0.3% in February. GBP/USD currently trades near 1.2658, down 0.02% on the day.
The BoE kept the interest rate unchanged at 5.25% at its March meeting on Thursday, as widely anticipated. The BoE Governor Andrew Bailey said that the economy is not at a point where the Monetary Policy Committee (MPC) can lower interest rates, but the economy is moving along on the right track. Markets anticipate the UK central bank will need more evidence of moderating wage growth before beginning to cut rates. However, investors maintain bets on BoE rate cuts this year, and the dovish tilt by the BoE policymaker weighs on the Pound Sterling (GBP) and acts as a headwind for the GBP/USD pair. Read more...
GBP/USD hits two-week low after BoE, Fed decisions
The Pound Sterling tumbles sharply against the US Dollar and prints a new two-week low following major central banks' monetary policy decisions. On Thursday, it was the Bank of England’s (boE) turn to deliver a dovish hold, spurring a U-turn in price action. At the time of writing, the GBP/USD trades at 1.2659, down 0.97%.
The BoE kept the Bank Rate at 5.25%, with a split vote of 8-1, with no officials expecting a rate hike, and one dissenter that voted for a rate cut. At the previous meeting, policymakers voted 6-3, with two members expecting a rate hike. Given the stance adjustment amongst policymakers, there’s growing consensus on the BoE that the current level of rates is tempering inflationary pressures. Read more...
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