News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Further your forex knowledge and gain insights from our expert analysts @JohnKicklighter and @JStanleyFX on $USD with our free Q4 market analysis guide, available for free today. https://t.co/7G7pWntiyY #DailyFXGuides https://t.co/k803MjNfTC
  • Stocks looked poised to rally with risk sentiment generally strong and technical signposts supportive of higher levels. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/j0iidIkrfR https://t.co/Jki7lJcs0B
  • Volatility, volatility, volatility. It's talked about so often but how can a trader really incorporate this into their approach? Find out here: https://t.co/SVmeGHIP2P https://t.co/rRe35rW8Mh
  • Markets move in cycles, and stocks do too, with certain sectors carrying more attraction in various backdrops. Learn more here:https://t.co/HMyeIy09Wm https://t.co/K16BSqaRxw
  • Bitcoin broke above $60k earlier in the session to a fresh multi-month high on the renewed expectation that the SEC will approve a futures-based Bitcoin ETF very soon. Get your weekly #Bitcoin forecast from @nickcawley1 here: https://t.co/cq9KH6fdQB https://t.co/isXVY87GZq
  • Further your stock trading knowledge and gain informed market analyses from our expert analysts @HathornSabin and @JMcQueenFX on Indexes with our free Q4 guide, available today.https://t.co/YQG1aaIT8C #Dailyfxguides https://t.co/aJViAT9lw8
  • Get your basics right. Find out what is stock market volatility and how you can trade It here:https://t.co/pK95WaqA3j https://t.co/sLMza2wKYd
  • The Japanese Yen continues to be pummeled against most major currencies. Get your weekly Japanese Yen forecast from @HathornSabin here: https://t.co/WY5rcoqNP2 https://t.co/JT8yOUgceA
  • The US Dollar paused its advance against ASEAN currencies. USD/SGD eyes a key trendline, USD/THB risks stalling, USD/PHP enters consolidation as USD/IDR continues ranging. Get your market update from @ddubrovskyFX here:https://t.co/Hd4mu0MKkp https://t.co/1kOgueJOXz
  • The economic calendar has its top listings (China GDP among them), but traders would do well to keep tabs on themes like the Fed outlook, an imminent Bitcoin record and lurking China contagion. What I'm watching for next week: https://www.dailyfx.com/forex/video/daily_news_report/2021/10/16/Dollar-Deals-with-Tight-Fed-Outlook-Bitcoin-Eyes-Record-Energy-Crisis-Worries-Continue.html https://t.co/LrlZXmF8jK
GBP Up as BoE Raises Rates In Surprise Unanimous Vote, Dips on Rate Guidance

GBP Up as BoE Raises Rates In Surprise Unanimous Vote, Dips on Rate Guidance

Justin McQueen, Strategist

GBPUSD Analysis and News

  • Bank of England Raises Rates to 0.75% in Surprise 9-0 Vote Split
  • However, Bank of England Signals No Rush for Next Rate Hike

For a more in-depth analysis on Sterling, check out the Q2 Forecast for GBP/USD

Bank of England Hikes Rates to 0.75%

As markets had expected the Bank of England hiked the bank rate by 25bps to 0.75%, however, what was unexpected was the vote split, which had surprised with a 9-0 vote (Exp. 7-2 vote). As such, this had provided an initial lift to the Pound, with GBPUSD rising 40pips to 1.3129. However, gains were quickly reversed with the BoE signaling no rush for the next rate hike given the uncertainty surrounding Brexit, which the central bank noted that the Brexit responses could influence policy significantly. As such, the implied rates curves is relatively unchanged with another hike not fully priced in until September 2019.

Bank of England Forecast

Forecasts

2018

2019

2020

2021

GDP

1.5% (Prev. 1.4%)

1.8% (Prev. 1.7%)

1.7% (Prev. 1.7%)

1.7%

CPI

2.5% (Prev. 2.4%)

2.2% (Prev. 2.1%)

2.1% (Prev. 2%)

2%

Source: Bank of England

Cautious Growth and Inflation Judgements

The MPC recognized that growth in Q2 had shown a pickup from the soft data in Q1, as such, they continue to expect a pick up to 0.4%, which is still relatively subdued, while business surveys have suggested Q3 growth will be similar. In regard to inflation, the MPC noted that the 2.4% in June was below the bank’s forecasts, adding that this signals slightly weaker inflation pressures. As such, this is a rather cautious rhetoric out of the Bank of England.

GBP/USD PRICE CHART: 1-Minute Time Frame (August 2nd)

GBP Up as BoE Raises Rates In Surprise Unanimous Vote, Dips on Rate Guidance

Chart by IG

See how retail traders are positioning in GBPUSD as well as other major FX pairs on an intraday basis using the DailyFX speculative positioning data on the sentiment page.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES