Bank of England meeting results
- Total Bank of England QE program (Nov), fact 435B, forecast 435B.
- Interest rate decision (Nov), fact 0.75%, forecast 0.75%.
Despite maintaining the key interest rate unchanged and the stimulus program at the same level, the British pound was under the pressure across the market. The reason for this was a shift in voting power of the bank members – 2 votes for rates cut of 9. This is regarded as a signal to reduce rates in the future.
Fig. 1. Bank of England interest rate chart
As a result, the British pound accelerated the decline on the possibility of rates cuts in the UK. In addition to signals about lower rates, the Bank of England government canceled a slowdown in the UK economy amid uncertainty over Brexit.
As a result, the GBP/USD pair accelerated the decline and updated the low at 1.2810-00, dropping to the lows of the last three weeks and accelerating the decline, which corresponds to a correction against October growth. Significant support are marks: 1.2770 and 1.2750.
Fig. 2. GBP/USD chart
Read also: “The risks of a trade war are back”
Hanzenko Anton
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- The trade war risks are coming back
- Upward dynamics of gold, resumption of growth or correction before the decline
- Increased transportation costs: a driver for rising oil prices
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