- EUR/GBP failed to hold above 0.9000 following BoE policy decision.
- Bank of England expanded the QE program by £100 billion as expected.
- GBP gathers strength against its rivals as BoE refrains from mentioning negative rates.
The EUR/GBP pair climbed to a daily high of 0.9015 during the European session but lost its traction in the last hour. As of writing, the pair was trading at 0.8983, still gaining 0.35% on a daily basis.
BoE helps GBP gather strength
At its June monetary policy meeting, the Bank of England (BoE) decided to leave its policy rate unchanged at 0.1% as expected. Additionally, the BoE announced that it expanded the quantitative easing (QE) program by £100 billion to £745 billion.
However, the BoE refrained from touching on the possible use of negative interest rates and provided a boost to the British pound. Reflecting the broad GBP strength, the GBP/USD pair spiked to a daily high of 1.2550 before returning to 1.2500 area.
Assessing the BoE's policy statement, "the BoE provided help to the government and the economy, but probably fell short of expectations – and of what is needed as the country struggles to return to normal from COVID-19 and amid Brexit uncertainty," said FXStreet analyst Yohay Elam.
There won't be any other macroeconomic data releases that could impact the pair's action in the remainder of the day. Friday's economic docket will feature Retail Sales data from the UK.
Technical levels to watch for
|Today last price||0.8982|
|Today Daily Change||0.0027|
|Today Daily Change %||0.30|
|Today daily open||0.8955|
|Previous Daily High||0.899|
|Previous Daily Low||0.8938|
|Previous Weekly High||0.9015|
|Previous Weekly Low||0.8864|
|Previous Monthly High||0.9054|
|Previous Monthly Low||0.8691|
|Daily Fibonacci 38.2%||0.8958|
|Daily Fibonacci 61.8%||0.897|
|Daily Pivot Point S1||0.8932|
|Daily Pivot Point S2||0.891|
|Daily Pivot Point S3||0.8881|
|Daily Pivot Point R1||0.8984|
|Daily Pivot Point R2||0.9013|
|Daily Pivot Point R3||0.9036|
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.