Pound Slips On Balanced BoE Report
No fireworks from BoE, instead a very balanced report.
Share this:
As expected, the MPC voted unanimously to keep monetary policy unchanged. The bank rate stays at 0.75% and the BoE will continue its bond buying programme at the current level of £435 billion. GBP/USD shifted lower in choppy trading.
There were no fireworks from the BoE. Instead a fine display of balancing positives and negatives. The central bank looked to be going out of its way to keep on an even keel.
• On the one hand, the BoE raised growth forecasts for 2019, 2020 and 2021. On the other, it cut inflation forecasts.
• It signalled that it was still minded to tighten monetary policy and that the path of hikes was steeper than what the market currently expects. Yet, Mark Carney & co. also said that they were in no rush with the cost of waiting low.
• Mark Carney highlighted the improving prospects for the global economy, whilst saying that domestic tensions remained elevated.
• Business investment was low and was expected to remain that way possibly leading to the longest decline in business investment in modern history. Yet companies are still hiring and the labour market remains robust.
Super Thursday was not really that super, instead rather average with most positives balanced out with a negative. If the central bank was trying to leave the spotlight firmly on Brexit and the UK political scene they succeeded. Pound traders will shift their gaze back to cross party talks and the local elections.
The dollar moved higher in the previous session after the Fed opted to stay neutral, whilst pouring cold water on the prospect of a rate cut by the end of the year. Dollar traders will now look ahead to the US non farm payrolls.
GBP/USD levels to consider
At the time of writing the pound is flat on the day at $1.3049 after falling from a session high of $1.3081 earlier this morning. Initial support can be seen at $1.3011, before $1.2975. On the upside resistance can be seen at $1.31 and $1.3130/5.
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD Q4 2026 Outlook: Euro at a Crossroads as Fed, ECB Tighten 9 25 2026
EUR/USD enters Q4 at a pivotal inflection point as competing Fed-ECB policy paths and persistent inflation risks collide with major technical support.
AUD/USD Q4 Outlook: RBA and Fed Hikes Set the Tone
AUD/USD enters Q4 with RBA and Fed hikes in focus as sticky inflation, rising unemployment and US dollar strength shape the Australian dollar.
USD/JPY Q4 2026 Outlook: Hawkish Fed Pricing Clashes With Intervention Risk
The year-end tug-of-war is clear: hawkish Fed pricing supports USD/JPY, while intervention risk limits the upside.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.