GBP/USD hawkish BOE hike could lift the pound to 1.2660 [Video]

GBP/USD retraces FOMC bounce, but will the bulls give up? [Video]

GBPUSD closed confidently above the 1.2570 resistance area on Wednesday after a short period of consolidation, raising hopes that the bounce off 1.2410 may get new legs in the short term ahead of today’s BoE policy announcement (12:00 GMT). Read more…

 

GBP/USD Forecast: Hawkish BOE hike could lift the pound to 1.2660

GBP/USD has lost its traction and retreated to the 1.2550 area early Thursday after having gained more than 100 pips late Wednesday. The pair faces a two-sided risk in the short term depending on the Bank of England’s (BOE) policy announcements. 

The BOE is widely expected to hike its policy rate by 25 basis points in May. When the bank decided to raise the rates in March, one member of the Monetary Policy Committee (MPC) voted against the decision, triggering a GBP selloff. It wouldn’t be a surprise if John Cunliffe, the dissenter in March, were to vote to keep the rates unchanged. If more members do the same, the British pound could come under heavy bearish pressure. Read more …

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GBP/USD plunges to its lowest level since July 2020 after BoE’s gloomy economic outlook

The GBP/USD pair weakened further below the 1.2400 mark and touched its lowest level since July 2020 in reaction to the Bank of England’s dovish outlook.

As was widely anticipated, the UK central bank lifted its key interest rate for the fourth time in the current tightening cycle to curb inflation. The vote distribution indicated that three MPC members were in favour of raising interest rates by 50 bps. Moreover, the BoE, in the accompanying policy statement, noted that some degree of further tightening in monetary may still be appropriate in the coming months. Read more …

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