GBP/USD fades recovery near 1.1100, US inflation, BOE’s bond-buying eyed
GBP/USD struggles to extend the previous day’s rebound from a two-week low, retreating to 1.1095 of late, as markets turn dicey ahead of Thursday’s US inflation data. Also weighing on the Cable pair could be recently hawkish comments from the Federal Reserve Governor Michelle Bowman, as well as fears surrounding the British economy and the Bank of England’s (BOE) bond-buying program.
Bank of England's bipolar policy
The Bank of England's frenzy of emergency bond market support is rocking the currency market boat, leaving GBPUSD as one of the protagonists on FX. The Bank of England extended emergency support to the debt market yesterday to include inflation-linked bonds in its buying list, triggering GBPUSD to rise from 1.10 to 1.1180 intraday.
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