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7 Feb 2013
Forex: GBP/USD hovering over 1.5700 after BoE
The sterling is orbiting around the key mark at 1.5700 after the BoE left no space for surprises, leaving both the lending benchmark and the asset purchase programme intact at 0.50% and £375 billion, respectively. The decision was broadly in line with market forecasts.
However, the central bank unexpectedly announced it would reinvest cash flows from Gilts
maturing in March 2013 and it sees the inflation could remain above the 2.0% target for the next two years. The BoE also informed that it is ready to inject more stimulus into the economy if the situation worsens.
At the moment, the cross is up 0.24% at 1.5700 and a breakout of 1.5738 (MA10d) would aim for 1.5805 (high Feb.5) and finally 1.5856 (MA21d).
On the flip side, support levels lie at 1.5630 (low Feb.5) followed by 1.5578 (low Aug.10) and then 1.5573 (low Aug.8).
However, the central bank unexpectedly announced it would reinvest cash flows from Gilts
maturing in March 2013 and it sees the inflation could remain above the 2.0% target for the next two years. The BoE also informed that it is ready to inject more stimulus into the economy if the situation worsens.
At the moment, the cross is up 0.24% at 1.5700 and a breakout of 1.5738 (MA10d) would aim for 1.5805 (high Feb.5) and finally 1.5856 (MA21d).
On the flip side, support levels lie at 1.5630 (low Feb.5) followed by 1.5578 (low Aug.10) and then 1.5573 (low Aug.8).