The British Pound posts gains after the meeting of Bank of England (BoE) outlined positive economic developments in the UK. The Pound rose above 1.3080 against the US Dollar immediately after the decision and it continues to rise.
"The most recent indicators suggest that global growth has stabilised, reflecting the partial easing of trade tensions and the significant loosening of monetary policy by many central banks over the past year. Global business confidence and other manufacturing indicators have generally picked up," the bank said in a statement adding that domestically "business activity have picked up, quite markedly in some cases, and investment intentions appear to have recovered". The BoE will closely monitor those developments in domestic activity over the coming months.
Moreover, the monetary policymaker has an inflation target of 2% by the end of 2021, after a decline to 1.3% in the third quarter of 2019.
The BoE mentioned that "some modest tightening" of the monetary policy might be needed if growth picks up, however, it no longer pointed to the fact that such tightening would be "limited and gradual".
The decisions made by the BoE always have a strong effect on the British Pound. Technically speaking, the decision and the message provided by BoE may lead to a further strengthening of the Cable towards resistance level of 1.3150.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade.
Indiscriminate reliance on illustrative or informational materials may lead to losses.
© 2000-2020. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.