The pound fell against its major rivals in the European session on Wednesday, after the Bank of England announced that it would intervene to support the bond market to prevent a material risk to financial stability.

The BOE noted that it is watching developments in financial markets very closely in light of the significant repricing of UK and global financial assets.

The central bank said that it would carry out temporary purchases of long-dated UK government bonds from September 28 in order to restore orderly market conditions.

The purchases of long-dated bonds would be strictly time limited. Auctions will take place from today until October 14.

The BoE added that the purchases would be unwound in a smooth and orderly fashion when risks to market functioning are found to have subsided.

In light of current market conditions, the central bank has postponed the beginning of gilt sale operations aimed to commence next week. The first gilt sale operations will take place on October 31 and proceed thereafter.

U.K. bond yields fell after the announcement, with the yield on the 30-year note falling to 3.925 percent.

The pound declined to a 2-day low of 1.0538 against the greenback, from a 2-day high of 1.0838 seen at 6 am ET. Next key support for the pound is seen around the 1.03 level.

The pound dropped to a 2-day low of 1.0419 against the franc, after rising to a 2-day high of 1.0730 at 6 am ET. The pound is seen finding support around the 0.9 mark.

The pound touched a 2-day low of 152.55 against the yen, following a 2-day high of 156.64 it logged at 6 am ET. The pound is likely to challenge support around the 149.00 region, if it drops again.

The pound weakened to a 2-day low of 0.9066 against the euro, down from a 2-day high of 0.8854 set at 6 am ET. Should the pound falls further, it is likely to face support around the 0.92 region.

Survey results from the market research group GfK showed that Germany's consumer sentiment is set to fall again to a fresh record low in October as high inflation amid rising energy prices hit income expectations, and in turn, consumer spending.

The consumer confidence index plunged to -42.5 in October from revised -36.8 in the previous month.

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