BOE leaves rates unchanged – GBP/USD stays high

No surprises from the UK, not yet. The BOE left the interest rates unchanged at the rock bottom level of 0.50% seen since 2009.

GBP/USD is ticking lower, but from high levels in the initial response. Update: cable is not falling fast. The real show is the release of the meeting minutes.

The Monetary Policy Committee in the UK was expected to leave the interest rate unchanged at 0.50% once again, and also to leave the Asset Purchase Facility (or QE program) at 375 billion pounds.

GBP/USD was moving higher to around 1.6215, after having risen quite nicely after the relatively dovish FOMC meeting minutes sent the dollar lower.

Pressure to raise the rates has been growing on Bank of England Governor Mark Carney. He has already  lost the  consensus in the MPC, with two members voting for a rate hike. We will not know the vote of this meeting until October 22. Some  analysts see the BOE raising rates as soon as November, but the majority see it  moving around February or March.

Cable dipped below 1.60 following the excellent US jobs report, but made a nice turnaround, alongside other currencies.

Support is found at 1.610 and resistance at 1.6250. For more, see the GBPUSD forecast.