Pound Falls On BoE Disappointment
05 Noviembre 2021 - 12:09AM
RTTF2
The pound dropped against its major counterparts in the European
session on Friday in the wake of the latest monetary policy
decision from the Bank of England to keep rate on hold,
disappointing some investors who had expected a hike to contain
inflation.
The BoE kept the bank rate unchanged at 0.10 percent and the QE
program at GBP 875 billion.
Dave Ramsden and Michael Saunders called for an increase in the
bank rate by 15 basis points to 0.25 percent.
Policymakers noted that there was considerable uncertainty about
the near-term outlook for the labor market, as over a million jobs
were expected to have been furloughed immediately before the
Coronavirus Job Retention Scheme closed at the end of
September.
The decision shocked investors as surging energy and food prices
have led to a spike in inflation, exceeding the BoE's target.
Governor Andrew Bailey said that inflation was being driven by
global "supply shocks" instead of demand pressure in the
economy.
The pound weakened to 1.3438 against the dollar, its lowest
level since October 1. The pound is likely to challenge support
around the 1.31 level.
The pound touched near a 9-month low of 1.2278 against the
franc, from yesterday's close of 1.2303. On the downside, 1.20 is
likely seen as the next support for the pound.
The pound was down against the euro, at a 5-week low of 0.8590.
Next key support for the pound is seen around the 0.88 level.
The pound hit more than a 3-week low of 152.85 against the yen,
from Thursday's close of 153.51. The pound is poised to challenge
support around the 150.00 mark.
Looking ahead, U.S. and Canadian jobs data for October, U.S.
consumer credit for September and Canada Ivey PMI for October will
be published in the New York session.
Sterling vs CHF (FX:GBPCHF)
Gráfica de Divisa
De Mar 2024 a Abr 2024
Sterling vs CHF (FX:GBPCHF)
Gráfica de Divisa
De Abr 2023 a Abr 2024