Pound Sterling gains on US-UK trade deal, BoE's gradual easing guidance
The Pound Sterling (GBP) outperforms its peers, except the Japanese Yen (JPY), on Friday. The British currency capitalizes on the announcement of the trade deal between the United States (US) and the United Kingdom (UK) the previous day, and the Bank of England (BoE) interest rate cut decision, with a 7-2 vote split.
The BoE lowered interest rates by 25 basis points (bps) to 4.25%, as expected, marking the fourth rate cut in the current monetary expansion cycle. BoE Monetary Policy Committee (MPC) member Catherine Mann and Chief Economist Huw Pill favored leaving interest rates unchanged, while investors expected all MPC members to vote for an interest rate reduction. Out of seven MPC members who supported monetary policy easing, two officials, Swati Dhingra and Alan Taylor, backed a bigger reduction of 50 bps. Read more...
GBP/USD Forecast: Pound Sterling stays below key resistance levels
Following a two-day slide, GBP/USD dropped toward 1.3200 early Friday and touched a fresh multi-week low before regaining its traction. The pair trades above 1.3250 in the European session but remains below key technical resistance levels.
The Bank of England (BoE) announced on Thursday that it cut the policy rate by 25 basis points (bps) to 4.25%, as widely anticipated. Unexpectedly, two policymakers voted in favor of holding the policy rate unchanged, while two others voted for a 50 bps cut. Meanwhile, the BoE noted in its policy statement that a gradual and careful approach to further withdrawal of monetary policy restraint remains appropriate. Read more...
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