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The Bank of England (BoE) has arrived to support the economy and pound bulls are cheering. Brexit may provide another leg higher as the GBP/USD pair is refreshing session tops around 1.3070, Yohay Elam, an Analyst at FXStreet, reports.

Key quotes

“The BoE has announced it will expand its bond-buying scheme by £150 billion to £895 billion, exceeding estimates of a more modest £100 boost. Moreover, the BoE refrained from setting negative interest rates, prompting investors to price that adverse development out.”

“Democratic candidate Joe Biden is nearing the presidency after winning Michigan and Wisconsin. To become the 46th President of the United States, the former Vice-President needs to win two out of three states that will likely be declared on Thursday – Arizona, Nevada, and Georgia. Otherwise, it goes down to the wire in Pennsylvania.” 

“Markets seem to cheer the falling chances of a contested election as well as fresh stimulus hopes. While Republicans may limit Democratic desires to raise taxes and impose new regulations, Majority Leader Mitch McConnell seems open to state aid – a thorny topic in talks about a new relief deal.”

“Apart from waiting for further election developments, the Federal Reserve’s rate decision is on the docket. While the bank is unlikely to change its policy, comments on the economy are of high interest. Daily coronavirus cases have topped 100,000 and that may weigh on the economy.” 

“It seems that the only brake on GBP/USD comes from Brexit talks. After several days of reporting progress, negotiators hit a snag on Wednesday, sending sterling lower. The see-saw is set to continue, and any upbeat headline could boost sterling.”