Sterling edges down

3 May, 2019

There were no surprises in the Bank of England’s policy decision today to leave interest rates unchanged at 0.75%.

The real surprise was the bank’s latest growth forecasts, which left the doors open for further tightening in the future. Sentiment over the UK economy is poised for a boost, given how economic growth is now projected to expand to 1.5% this year from the decade-low 1.2% predicted in February. While growth figures were revised higher, inflation figures were revised lower, to 1.6% in 2019 and 2.0% in 2020. Overall, the Bank of England came across as cautiously optimistic but also highlighted how Brexit continues to cloud the outlook for monetary policy. With the central bank likely to maintain a patient stance and closely monitor Brexit developments before making any decision on interest rates, the Pound is seen edging lower in the short to medium term. Should economic data from the UK continue to improve and more clarity is offered on Brexit, the BoE will have a valid argument for taking action. However, when it comes to Brexit, if uncertainty remains the name of the game, rates are likely to remain unchanged for the rest of 2019.

Looking at the technical picture, the GBPUSD is under pressure on the daily charts with prices trading marginally below 1.3050 as of writing. Sustained weakness below this point is seen opening a path back towards the psychological 1.3000 level.


Source link   Presented by FXTM

GBP/USD remains capped below 1.2600

Manages to recover on broad USD weakness, weaker US rates. Bearish bias intact amid dovish Carney's speech and weak UK fundamentals...

GBP/USD remains vulnerable

The GBP/USD pair traded with a mild negative bias for the third consecutive session on Friday and extended this week's rejection slide from...

GBP risks losing further 5%

Now that United Kingdom traders are returning back to office following a public holiday, we should expect for the fallout from the Brexit Party's...


GBP/USD clings to recovery gains

A modest USD pullback from two-year lows helped bounce of multi-month lows. The recovery got an additional boost following the release of UK...

Pound went below 1.27 on Brexit fears

The British Pound descended deeper into the abyss this morning with prices falling below $1.27 for the first time since January 2019 as uncertainty...

Sterling struggles to nurse wounds

The return of domestic political turmoil in the United Kingdom has led to a flurry of selling momentum for the British Pound, which fell over 300 pips...


Pound awaits latest Brexit outcome

With 2 days to go before the EU summit regarding Brexit developments, time is running out for the UK government to come up with a solution to break the...

Rebound appears capped near 1.3200

GBP on the back foot as Parliamentary is set to vote on alternative Brexit options. Awaits fresh Brexit clarity while May’s future also remains a key decisive...

Market sentiment stabilizes

The mood across Asian markets improved this morning, amid easing concerns about the global economy and a possible recession in the United States...

  


Share it on:   or