Pound Rises As BoE Holds Key Rate As Expected
19 Settembre 2024 - 10:02AM
RTTF2
The British pound strengthened against other major currencies in
the European session on Thursday, after the Bank of England decided
to maintain its benchmark rate, after a quarter-point cut last
month and also extended its bond reduction plan for another one
year.
The Monetary Policy Committee headed by Andrew Bailey voted by a
majority of 8-1 to hold the Bank Rate at 5.00 percent.
At the August meeting, the MPC had voted in a tight 5-4 vote to
cut the rate by a quarter point from a 16-year high of 5.25
percent.
Bank staff forecast the UK economy to grow 0.3 percent in the
third quarter, which was weaker than the 0.4 percent estimated in
August.
Inflation is expected to increase to around 2.5 percent towards
the end of this year as declines in energy prices last year fell
out of the annual comparison.
European shares traded higher after the U.S. Federal Reserve
slashed its key rate by 50 basis points and signaled further
easing, raising hopes of a soft landing for the world's largest
economy.
In the European trading now, the pound rose to a 2-1/2 year high
of 1.3314 against the U.S. dollar, from an early 2-day low of
1.3154. The GBP/USD pair may test resistance around the 1.35
region.
Against the euro, the Swiss franc and the yen, the pound
advanced to nearly a 2-month high of 0.8392, nearly a 3-week high
of 1.1261 and more than a 2-week high of 190.38 from early lows of
0.8424, 1.1185 and 188.18, respectively. If the pound extends its
uptrend, it is likely to find resistance around 0.81 against the
euro, 1.16 against the franc and 196.00 against the yen.
Looking ahead, U.S. weekly jobless claims, current account for
the second quarter, U.S. Philadelphia Fed manufacturing index for
September, existing home sales for August and U.S. leading index
for August are slated for release in the New York session.
Grafico Cross Sterling vs Yen (FX:GBPJPY)
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Grafico Cross Sterling vs Yen (FX:GBPJPY)
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