10 Apr 2014
GBP/USD unmoved after BoE
FXStreet (Edinburgh) - The sterling keeps the composure on Wednesday after the BoE inaction, leaving the GBP/USD to trade in the 1.6780/75 region.
GBP/USD indifferent, below 1.6800
Spot keeps the intraday range after the BoE left intact its monetary policy with the refi rate at 0.5% and the asset purchase facility at £375 billion, broadly in line with market consensus. There is no statement in today’s meeting, prompting investors to follow the more ample risk-on trends ahead of the US docket. “Comments from officials suggest that they are comfortable with the market’s assessment that it will be 1Q/2Q15 when rate hikes start, but that the eventual peak in interest rates will be lower than in previous cycles”, assessed James Knightley, Analyst at ING Bank NV.
GBP/USD levels to consider
As of writing the pair is losing 0.11% at 1.6773 and a breakdown of 1.6725 (low Apr.9) would target 1.6700 (psychological level) en route to 1.6684 (low Mar.31). On the upside, the initial hurdle aligns at 1.6821 (high Apr.10) followed by 1.6823 (2014 high Feb.17) and then 1.6845 (high Nov.18 2009).
GBP/USD indifferent, below 1.6800
Spot keeps the intraday range after the BoE left intact its monetary policy with the refi rate at 0.5% and the asset purchase facility at £375 billion, broadly in line with market consensus. There is no statement in today’s meeting, prompting investors to follow the more ample risk-on trends ahead of the US docket. “Comments from officials suggest that they are comfortable with the market’s assessment that it will be 1Q/2Q15 when rate hikes start, but that the eventual peak in interest rates will be lower than in previous cycles”, assessed James Knightley, Analyst at ING Bank NV.
GBP/USD levels to consider
As of writing the pair is losing 0.11% at 1.6773 and a breakdown of 1.6725 (low Apr.9) would target 1.6700 (psychological level) en route to 1.6684 (low Mar.31). On the upside, the initial hurdle aligns at 1.6821 (high Apr.10) followed by 1.6823 (2014 high Feb.17) and then 1.6845 (high Nov.18 2009).