Home Daily Commentaries Sterling dips after Bank of England meeting

Sterling dips after Bank of England meeting

Daily Currency Update

GBP - British PoundSterling fell on the back of the Bank of England announcement, as Governor Bailey gave no indication that the monetary policy committee (MPC) are planning on changing interest rates in the short term. The pound fell by 0.4% against the US dollar and hit session lows of 1.3888. The MPC voted 8-1 in favour of keeping their government bond-buying scheme at 875m. Bailey suggested that there is no issue with inflation sitting above the 2% target, and it might even reach 3% for a temporary period.

Key Movers

The Euro has climbed 0.5% against the US dollar since the Monday open, as positive economic data continues to be released from the Eurozone. The Gfk Consumer Climate indicator in Germany was released on Friday morning, posting a figure of -0.3%, which is the highest level since August 2020. The Euro strength could continue as the European council meeting later plays out. Over in the US, the initial jobless claims data fell slightly short of expectations, falling 7,000 to 411,000, alleviating concerns about the US Federal Reserve tapering stimulus. A reading of over 200,000 is a sign of a healthy labour market.

Expected Ranges

  • GBP/USD: 1.3820 - 1.4080 ▼
  • GBP/EUR: 1.1590 - 1.1765 ▼
  • GBP/AUD: 1.8250 - 1.8490 ▼
  • GBP/CAD: 1.7040 - 1.7265 ▼