After BoE Decision, Pound Falls While Dollar Softens

After BoE Decision, Pound Falls While Dollar Softens

At today’s BoE meeting, investors who expected additional hawks to enter the policy discussion were disappointed. The pound has fallen sharply today as the BoE failed to surprise with a hawkish statement. While the outlook appeared to be positive, the MPC, except head economist Andy Haldane, would prefer to wait until August to make any policy decisions.

Andy Haldane was the lone dissenter, advocating for a reduction in bond purchases, but he is leaving the bank at the end of June. Policymakers agreed unanimously to preserve interest rates at their present record low of 0.1 percent, and a majority of policymakers voted to keep asset purchases at £895 billion.

After weaker-than-expected jobless claims and durable goods orders, the dollar is also weak. The New Zealand Dollar, on the other hand, is currently the strongest currency, followed by the Yen and then the Euro. US futures are currently pointing to a higher open, and we’ll see if the risk-on surge continues, putting pressure on the Dollar and Yen.

Today, the pound has lost ground against every major currency, falling as high as 0.5 percent versus the Euro and 0.7 percent against the Swedish Krona. On the daily charts, the GBPUSD currency is under pressure, with resistance near 1.40. A strong daily close below 1.39, which is also below the 100-day SMA, might imply a return to the weekly lows around 1.3786. A significant move back above 1.40, on the other hand, might lead to 1.4080 and 1.4133, respectively.

Dollar: Jobless Claims Marginally Falls

On Thursday afternoon, the dollar sank as the Labor Department reported that jobless claims in the United States fell 411,000 last week, compared to market expectations of 380,000. This was essentially the same as the previous week’s 412,000 claims.

The disappointing unemployment claims could add to the cacophony and contradictory signals from Federal Reserve policymakers on the timing of tightening monetary policy, given how the Fed has made it clear to markets that employment is a crucial component of its mandate.

Philadelphia Fed President Patrick Harker, Atlanta Fed President Raphael Bostic, St. Louis Fed President James Bullard, and New York Fed President John Williams will all be in the center today, as will other Federal Reserve officials.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.