BoE MPC voted 6-3 to hold interest rates in March. Dale and Weale voted for 25bp hike and Sentence for 50bp. This is no change on last month’s vote split, where we saw Dale join the hawks to hike. Yesterday GBPUSD reached a 14 month high as the market sentiment was that the BoE will be under pressure to hike rates soon due to the pressure of inflation. Inflation data came out at a staggering 4.4% YoY level, well over the 2% target. The news of no-change on vote this morning signaled that a hike may not come as soon as expected and left the market feeling uncertain. GBPUSD headed south from 1.6400 and the momentum has driven it into the high 1.62’s. Trading central report a pivot point at 1.6350 with a preference to sell and the first support level is 1.6240.
For further technical & fundamental news go to Research & Analysis.
Zoe Fiddes, easy-forex, UK