The sterling is now accelerating its daily decline vs. the greenback, relegating
GBP/USD
to trade in 3-week lows near 1.5230.
GBP/USD much weaker
post-Carney, BoE
The pound has been hammered as the BoE has
removed any hopes of an early rate hike at today’s meeting. The central bank has
also revised lower its forecasts for both inflation and economic growth in the
UK, and it now expects consumer prices to reach the target level within two
years, while the first rate hike is now seen in early 2017.
It is worth
noting that the BoE left unchanged its monetary stance, with the refi rate at
0.5% and the asset purchase facility at £375 billion. MPC member Ian McCafferty
has once again voted for a 25 bp hike.
GBP/USD levels to
watch
At the moment, the pair is down 1.01% at 1.5228 with the
immediate support at 1.5198 (low Oct.13) ahead of 1.5160 (low Sep.4) and then
1.5106 (low Oct.1). On the other hand, a break above 1.5448 (61.8% Fibo of
1.5659-1.5106) would open the door to 1.5478 (downtrend from 1.5820) and finally
1.5513 (high Oct.15).
