BoE MPC meeting next: Impact on GBP/USD

FXstreet.com (Edinburgh) -The BoE will hold its monthly gathering today. Market consensus expects the central bank to stay on the sidelines, leaving unchanged the refi rate and the asset purchase facility at 0.5% and £375 billion, respectively. However, expectations are tilted towards a dovish tone from Carney, although any mention of forward guidance and/or the adoption of thresholds for monetary policy would likely wait until the Inflation Report due on August 7.

The sterling has recovered the 1.5200 handle, coming from lows below 1.5140, after the final manufacturing PMI print for July bettered the median and previous reading. Next levels to watch in the pair will be yesterday’s peak at 1.5254 ahead of the psychological mark at 1.5300, while on the downside, the initial support emerges at Wednesday’s low at 1.5125 followed by 1.5080, July 17th low.

Valeria Bednarik, Currency Strategist at FXstreet.com, commented, “a recovery up to 1.5270 won’t be enough to put bulls back in control, but steady gains above the level will, with 1.5320 then at sight”.