Breaking: BOE sends GBP/USD down with growing concerns

Yohay Elam FXStreet

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

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.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.