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The Great British pound rebounded against the US dollar, Euro, and the Japanese yen on Monday ahead of the Bank of England monetary policy decision. The BOE will announce its latest decision on monetary policy on Thursday, Feb 03. Several market participants anticipate that the central bank expected to raise interest rates by 0.25% in its Feb meeting.
At its last meeting on December 16, 2021, the central bank increased its key policy rate by 15bps to 0.25% to control inflation. The move was approved by eight out of nine members of the monetary policy committee. The surprise move came just after the official rate of inflation reached 5.1%, the highest rate recorded in the last decade.
“The committee continues to judge that there are two-sided risks around the inflation outlook in the medium term, but that some modest tightening of monetary policy over the forecast period is likely to be necessary to meet the 2 per cent inflation target sustainably,” the Bank of England said in the last meeting.
GBPUSD trades above 1.3440 on Monday, the currency pair recovered more than 80 pips from the previous week lows. Technically the overall momentum remains mixed. On the downside, 1.3350 is the crucial support area to watch. If the pair breaks below the 1.3350, the slump will quickly extend toward the 1.3290/70 marks. On the upper side, the first immediate resistance is around 1.3480 and then 1.3530/50.
Read the original report here- https://gulfbrokers.com/en/gbp-rebounds-focus-shifts-to-the-boe-decision
At its last meeting on December 16, 2021, the central bank increased its key policy rate by 15bps to 0.25% to control inflation. The move was approved by eight out of nine members of the monetary policy committee. The surprise move came just after the official rate of inflation reached 5.1%, the highest rate recorded in the last decade.
“The committee continues to judge that there are two-sided risks around the inflation outlook in the medium term, but that some modest tightening of monetary policy over the forecast period is likely to be necessary to meet the 2 per cent inflation target sustainably,” the Bank of England said in the last meeting.
GBPUSD trades above 1.3440 on Monday, the currency pair recovered more than 80 pips from the previous week lows. Technically the overall momentum remains mixed. On the downside, 1.3350 is the crucial support area to watch. If the pair breaks below the 1.3350, the slump will quickly extend toward the 1.3290/70 marks. On the upper side, the first immediate resistance is around 1.3480 and then 1.3530/50.
Read the original report here- https://gulfbrokers.com/en/gbp-rebounds-focus-shifts-to-the-boe-decision