GBPUSD Update: BoE halt asset purchases program, keep option of reopening it should the recovery falter.

[RTFX-Trading]

GBPUSD Update: BoE halt asset purchases program, keep option of reopening it should the recovery falter.

As expected the Bank of England have kept the benchmark interest rate at 0.50% and maintained its asset purchases target at £200B. However, the Monetary Policy Committee retained the option of reopening the program should conditions threatening to end the UK’s weak recovery resurface.  “The Committee will continue to monitor the appropriate scale of the asset purchases program and further purchases should the outlook warrant them,” the MPC said.

Meanwhile Cable broke out of its recent range and fell to 1.5806, a fresh month low. Immediately after the release of the MPC decision the Sterling appeared to be staging a comeback and reached 1.5886 only to retreat and resume its downward trend at the start of US trading. We will now look for a retest of the medium term support at 1.5700 in GBPUSD.



Emman Xuereb
Trading Desk
RTFX Ltd
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