The Bank of England was not expected to make any policy change. The interest rate was left unchanged at 0.50%, as it was since early 2009, and the QE program was left unchanged at 375 billion pounds. Carney recently said he saw no case for more QE. Only two months have passed since BOE Governor Mark Carney presented his forward guidance plan, and data regarding the UK economy hasn’t materially changed.
GBP/USD traded just below 1.5930 before the release. It is now recovering from the lows and moving to around 1.5950.
Most indicators have been positive, but every negative figure hurts the pound. Retail sales a few weeks ago and this week’s industrial data certainly hit GBP, and provided an opportunity for consolidation after a sharp rise.
1.60 serves as resistance, as a round number. 1.5910 was a recent low.
For more, see the GBP USD forecast.
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