The MPC Meeting Minutes showed a unanimous decision to maintain policy unchanged in April. This was not surprising, but the minutes also consist of some interesting comments.
GBP/USD rises 30 pips and trades at 1.4966. Update: the pair continues north, riding on USD weakness and crosses the 1.50 level.
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The euro-zone economy seems to be picking up according to the Bank of England. This is a relatively upbeat assessment. However, regarding the US economy, the members seem to be surprised by the “sudden deterioration”.
Regarding the UK economy, not much has changed since the previous decision. The comment about little change in the UK economy could be related to the upcoming elections: Carney and co. might prefer refraining from anything that could be seen as influencing the elections.
Regarding the pound, they see its strength as lowering CPI faster than predicted and that it could imply a bigger bounce back. This is also a hawkish comment.
These are minutes from the April meeting, in which the MPC left policy unchanged, as usual. This is also politically sensitive.
GBP/USD traded around 1.4935 towards the publication and continues advancing. Can it hit 1.50?
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