🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Forex - GBP/USD trims gains after BoE holds

Published 10/08/2015, 07:11 AM
Pound pulls back from session highs vs. the dollar after BoE rate decision
GBP/USD
-
EUR/GBP
-

Investing.com - The pound trimmed gains against the U.S. dollar on Thursday, after the Bank of England left its monetary policy unchanged, while investors awaited the minutes of the Federal Reserve's most recent policy meeting later in the day.

GBP/USD pulled back from 1.5372, the pair's highest since September 22, to hit 1.5324 during European afternoon trade, still up just 0.03%.

Cable was likely to find support at 1.5218, Wednesday's low and resistance at 1.5456, the high of September 15.

The BOE said it was holding the benchmark interest rate at 0.50%, in a widely expected move. The rate has been held at that level since March 2009.

The central bank also said it was to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.

Minutes from the meeting showed that the Monetary Policy Committee voted 8-1 to keep rates on hold, with Ian McCafferty voting in favor of a hike in the benchmark rate to 0.75%.

All nine members were in favor of making no changes to the central bank's £375 billion asset-purchase program.

According to the minutes, the path interest rates will follow over the next few years will depend on economic circumstances.

Most market players expect the BOE to begin slowly raising interest rates in mid-2016.

Investors were now eyeing the minutes of the Fed's latest policy meeting, due later in the day, for further indications on the central bank's next policy moves.

The dollar has been under pressure recently amid diminished expectations for a rate hike by the Fed this year in the wake of last Friday's unexpectedly weak U.S. jobs report for September.

Sterling was lower against the euro, with EUR/GBP gaining 0.46% to 0.7369.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.