Breaking: BOE sends GBP/USD down with growing concerns

The Bank of England has left its interest rate unchanged in a unanimous vote as expected but has changed its tone. The bank has cut its Q2 growth forecast to 0% from 0.2% and says it is seeing increasing signs that wage growth has leveled off. The BOE still intends to tighten its monetary policy albeit it at a limited and gradual pace.

Downside risks have increased in comparison to the previous rate decision.

GBP/USD has dropped below 1.2700 after reaching a high of 1.2726 earlier in the day.

Follow all the updates in the BOE live coverage

GBP USD technical chart BOE dovish

The Bank of England was expected to leave its interest rate unchanged at 0.75% in a unanimous vote. However, some have expected the BOE to alter its language and drop its intention to raise rates. The Federal Reserve, the European Central Bank, and other central banks have changed their policy amid low inflation and rising uncertainty related to trade.

In the UK, Brexit uncertainty is elevated while economic data has been mixed. Governor Mark Carney will deliver a speech at Mansion House later in the day.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: 50-day SMA restricts immediate recovery

EUR/USD buyers look for confirmation, despite recent bounce, as prices still trade below the near-term key moving average, around 1.1025, during early Friday.


GBP/USD: On the bids above 100-bar SMA

GBP/USD holds on to recovery gains from 50% Fib retracement level while taking the bids to 1.2885 during the early Asian. Bullish MACD indicates pair’s another run-up to the short-term key resistance line.


USD/JPY extends the bounce above 108.50 on rising trade deal hopes

The USD/JPY pair extends its bounce from eight-day lows of 108.25 in Friday's Asian trading, with the bulls regaining control above 108.50 after White House Economic Adviser Kudlow's comments bolstered US-China trade deal hopes. 


Gold awaits clear direction around $1470 amid risk reset

With the fresh optimism surrounding the US-China trade accord, Gold prices struggle to extend the previous recovery while taking rounds to $1,471 amid Friday’s initial Asian trading session.

Gold News

US China trade and the global economy: Q&A with FXStreet senior analyst

After the meetings in October it was unclear if the new levies planned for December would be called off. And now, reports suggest that past duties may be removed. All in all, a positive development, isn't it?

Read more