Never miss a story from David Maycotte

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to David Maycotte

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

The Bank of England kept its benchmark interest rate unchanged at 0.50 percent. There was no policy statement following the release.

UK CPI continues below the 2 percent target rate established at the central bank. The headline inflation rate is at 1.8 percent, and the month-on-month registered at 0.4 percent in May. The central bank may not be prompted to rethink its accommodative policy until remaining spare capacity is absorbed. Noting that UK 2-year bond yields are higher for the past 15 months, suggests traders may continue to entertain a relatively hawkish view of the BOE. Continued inaction by the central bank may leave the bulls disappointed, potentially leading to a shift in market sentiment.

The event was largely uneventful for the British Pound, registering a minor uptick following the release. DailyFX Strategist Jamie Saettele, CMT sees GBP/USD bearish below 1.6900. He notes that former support near 1.6760 has responded as resistance.

GBP/USD Daily

Bank of England Holds UK Interest Rates at 0.5%; GBP/USD Faces Resistance

Chart Prepared by Jamie Saettele, CMT using FXCM Marketscope 2.0

Bank of England Holds UK Interest Rates at 0.5%; GBP/USD Faces Resistance

GBP/USD 5-Minute Chart Using FXCM Market Scope

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to dmaycotte@FXCM.com.

Want to trade with proprietary strategies developed by FXCM? Find out how with Mirror Trader.