The BoE left policy on hold, as expected at today’s policy decision. The Pound Sterling (GBP) is slightly firmer on the hold, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
BoE puts the rate on hold
"Policymakers were split on the decision again but the 8-1 vote was a bit cleaner than the 7-2 expected by markets. Swaps are pricing out a small amount of BoE easing risk over the balance of this year. Governor Bailey said the BoE should be able to cut rates ‘gradually’ over time. There is no press conference today but the governor and MPC member Mann are speaking tomorrow.”
“The Pound Sterling (GBP) is slightly firmer on the hold and split decision but gains through the low 1.33s take Cable to its highest since March 2022. GBP is finding firm support on weakness to the 1.3150 area and has rebounded strongly from yesterday’s late session to retest the 1.33 area.”
“GBP is maintaining a steady trend appreciation against the USD, supported by a bullish alignment of trend strength oscillators across the short-, medium– and long-term charts. Key resistance sits at 1.3330 (long-term retracement) ahead of a return to the 1.35/1.40 zone.”
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