The BoE left its policy rate unchanged at 4.75%, as expected. The Pound Sterling (GBP) has traded well off the earlier session highs to edge back under 1.26 in early trade here, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
GBP dips after BoE leaves policy unchanged
“c. The policy statement reaffirmed recent policymakers’ comments, noting that a ‘gradual approach’ to future policy cuts was the right approach. The Bank said it could not commit to when or by how much it would ease policy next year. Sterling weakened on the announcement.”
“GBP has traded well off the earlier session highs to edge back under 1.26 in early trade here. Spot trends are weak and momentum favours more USD gains. Cable looks poised to test major trend support at 1.2520 shortly. Resistance is 1.2650/60.”
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