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The Bank of England (BoE) left monetary policy unchanged today while GBP/USD squeezed a touch higher in the aftermath of the decision, per TD Securities.

Key quotes

“The BoE left Bank Rate unchanged at 0.10% today in a 9-0 vote, and left asset purchases unchanged at £645bn in a 7-2 vote, with two members preferring to announce another £100 of asset purchases at today’s meeting.” 

“We look for an additional £100bn of QE to be announced at the June meeting.” 

“1.2420 should cap any further squeeze higher while a push above toward 1.2450 looks likely to attract more pronounced selling interest.” 

“With the USD currently on a more defensive footing (for now), we think bids could emerge around 1.2360. The overnight low at 1.2311 seems fairly secure for the near term – at least for now.”