OctaFX | OctaFX Forex Broker
Open trading account
Back

GBP/USD losing altitude, back to 1.5330 on BoE

FXStreet (Edinburgh) - The sterling is giving away some of its initial gains vs. the dollar, now sending GBP/USD to the 1.5330 region.

GBP/USD weaker after BoE

After hitting fresh tops in the 1.5370 area, spot is now deflating to the 1.5325/20 band following the steady stance from the BoE at its meeting today. Broadly in line with market expectations, the ‘Old Lady’ left both the refi rate and the asset purchase facility at 0.5% and £375 billion, respectively.

The BoE minutes have shown another 8-1 vote in favour of leaving rates unchanged today, with MPC member Ian McCafferty voting for a 25 bp hike to 0.75%. The minutes have also noted that the stronger GBP has been putting downside pressure on consumer prices while it still remains some spare capacity in the UK economy.

GBP/USD important levels

As of writing the pair is up 0.05% at 1.5327 facing the initial resistance at 1.5400 (psychological level) ahead of 1.5443 (Fibo 38.2% of 1.5658-1.5107) and then 1.5510 (100-day sma). On the other hand, a breach of 1.5137 (low Oct.5) would expose 1.5107 (low Oct.1) and then 1.5089 (low May 5).

USDCAD: Stabilized for now - TDS

Research team at TDS, note that the USDCAD pair looks to have stabilized, for now and they are watching for a break to the downside is 1.2950/70 area which is key near-term support.
Read more Previous

Rate hikes are to be more gradual – BOE minutes

The minutes of the latest monetary policy decision released today showed the policymakers unanimously believe the rate hikes, when they happen, are to be more gradual.
Read more Next
Start livechat