GBP/USD Forecast: Pound could weaken in case BOE forecasts recession
GBP/USD has recovered a portion of the losses it suffered in the last two days and advanced toward 1.2170 in the early European session on Thursday.
The Bank of England (BOE) is widely expected to hike its policy rate by 50 basis points (bps) to 1.75% following its August policy meeting. The bank will also publish its revised growth and inflation forecasts. Governor Andrew Bailey will deliver his remarks on the policy outlook and respond to questions from the press starting at 1130 GMT. Read more...
GBP/USD Price Analysis: Seems vulnerable post-BoE, ascending channel breakdown in play
The GBP/USD pair extends the post-Bank of England downfall and has now retreated around 140 pips from the daily high - levels just above the 1.2200 mark. The pair maintains its heavily offered tone through the early North American session and is currently trading near the weekly low, just above the mid-1.2000s.
The BoE warned that a UK recession will begin in the fourth quarter and last all the way through next year and said that the monetary policy is not on a pre-set path. This suggests that the UK central bank would adopt a more gradual approach to raising interest rates, which, in turn, weighs heavily on the British pound. Read more...
GBP/USD dives to fresh weekly low, bears flirt with 1.2100 mark post-BoE
The GBP/USD pair struggles to find acceptance above the 1.2200 mark for the second straight day on Thursday and witnessed aggressive selling after the Bank of England announced its policy decision. The pair turns lower for the third straight day and momentarily slips below the 1.2100 round figure, hitting a fresh weekly low in the last hour.
As was widely expected, the BoE's Monetary Policy Committee (MPC) voted unanimously to raise the benchmark rate by 50 bps - the most since 1995 - to 1.75%, or the highest level since late 2008. The jumbo rate hike, however, was fully priced in the markets and thus, prompted a typical 'buy the rumour sell the fact' kind of trade around the British pound. Read more...
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