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8 Jan 2015
GBP/USD steady as BoE offers no surprises
FXStreet (Córdoba) - GBP/USD was little changed trading near multi-month lows after the Bank of England decision to keep monetary policy unchanged.
As expected, the MPC of the BoE decided to keep interest rates unchanged at 0.5% where it has stood since March 2009, and the amount of the bond purchase programme at £375 billion.
Cable showed little reaction to the decision and it is currently trading at the 1.5060 zone, 0.32% below its opening price, having hit a fresh 17-month low of 1.5033 earlier during the European session.
GBP/USD technical outlook
“Although there is scope for a test of the 1.50 figure in the short term, the level may attract buying interest if reached and trigger a bounce, yet if this last holds below 1.5100, risk will remain to the downside”, said Valeria Bednarik, chief analyst at FXStreet. “A break below 1.50 on the other hand should fuel the selloff and send the pair down to 1.4940/60 area in the short term”.
As expected, the MPC of the BoE decided to keep interest rates unchanged at 0.5% where it has stood since March 2009, and the amount of the bond purchase programme at £375 billion.
Cable showed little reaction to the decision and it is currently trading at the 1.5060 zone, 0.32% below its opening price, having hit a fresh 17-month low of 1.5033 earlier during the European session.
GBP/USD technical outlook
“Although there is scope for a test of the 1.50 figure in the short term, the level may attract buying interest if reached and trigger a bounce, yet if this last holds below 1.5100, risk will remain to the downside”, said Valeria Bednarik, chief analyst at FXStreet. “A break below 1.50 on the other hand should fuel the selloff and send the pair down to 1.4940/60 area in the short term”.