GBPUSD was consolidating on Wednesday, as markets reacted to news that the Bank of England was set to continue buying gilts.
 
The bank was set to start selling U.K. Bonds (gilts) next week, after deciding to stop QE, however they have opted to alter course.

Today’s move comes as the British Pound fell to a record low versus the U.S. Dollar, as a result of recent government led tax cuts.

Speaking today, BOE Governor, Andrew Bailey stated that, “In line with its financial stability objective, the Bank of England stands ready to restore market functioning and reduce any risks from contagion to credit conditions for UK households and businesses”.

As of writing, GBPUSD is trading at $1.0722.

 

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