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Forex: GBP/USD dips to fresh lows around 1.5260

FXstreet.com (Barcelona) - The sterling is suffering the poor labour market data on Wednesday, after the ILO unemployment rate ticked higher to 7.9% in the three months to February, missing estimates at 7.8% and up from 7.8%. The unchanged stance from the BoE reflected in today’s minutes have also collaborated in the downside.

“Today’s minutes just reinforced the continuing data-dependent nature of the BoE’s QE decision. The May Inflation Report will give the MPC updated projections upon which to base their next policy decision”, commented Jacqui Douglas, Global Strategist at TD Securities.

At the moment, the cross is down 0.62% at 1.5265 with the next support at 1.5251 (low Apr.9) ahead of 1.5240 (MA21d) and finally 1.5239 (low Apr.8).
On the other hand, a surpass of 1.5386 (high Apr.15) would aim for 1.5409 (high Apr.12) and finally 1.5412 (high Apr.11).

Forex Flash: BoE should focus its efforts on supporting credit growth rather than extending QE – TD Securities

The April meeting minutes came in largely as expected, with the MPC voting 6-3 in favor of unchanged asset purchases (and 9-0 in favor of unchanged rates), with Fisher, Miles, and Governor King continuing to prefer a £25bn extension of QE for the third meeting in a row, and not a single MPC member changing his vote from the prior month. TD Securities analysts found interesting the mention that the “Committee also saw merit in possible extensions to the FLS that would boost lending further”: “This is in line with what we have been saying for some time, that further stimulus from the BoE is more likely to come via FLS or another program that is targeted toward expanding credit, rather than more QE. With UK rates still quite low, that would likely be more effective at fixing what aids the UK economy right now, rather than using a blunt tool like QE”, wrote analyst Jacqui Douglas, adding that today’s minutes just reinforced the continuing data-dependent nature of the BoE’s QE decision.
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