GBP/USD moves back closer to multi-month tops, around 1.3165 region post-BoE
- GBP/USD edged higher and moved back closer to multi-month tops post-BoE.
- The BoE left interest rates and bond-buying program unchanged, as was expected.
- The offered tone surrounding the USD remained supportive of the pair’s uptick.
The GBP/USD pair added to its modest intraday gains and refreshed daily tops, around 1.3165 region post-BoE policy decision.
As was widely expected, the Bank of England (BoE) refrained from taking any further action and left its benchmark interest rate at an all-time low of 0.1%. The UK central bank also kept its bond-buying program unchanged at £745 billion.
In the absence of any major shift in the language, the announcement did little to provide any meaningful impetus to the GBP/USD pair. However, the bearish sentiment surrounding the US dollar remained supportive of the pair's modest uptick.
Meanwhile, growing worries about the second wave of the coronavirus infections in the UK and renewed fears of a no-deal Brexit might hold investors from placing aggressive bullish bets. This, in turn, might keep a lid on any strong gains for the GBP/USD pair.
Moving ahead, market participants now look forward to the post-meeting press conference, where comments by the BoE Governor Andrew Bailey might infuse some volatility around the GBP crosses. This along with the release of Initial Weekly Jobless Claims data might produce some meaningful trading opportunities later during the early North American session.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
