GBPUSD pair fell over 200 pips today as investors digested the latest BoE decision to hike interest rates by 50 bps to 3.5%, a 14-year high. This move was already priced in by the market and the decision itself was not unanimous, with two policymakers pushing to keep the bank rate unchanged, indicating that central bankers are noticing the fact that tightening conditions have a negative impact on the economy. Today's rate hike follows a cooler-than-expected CPI print earlier this month, showing that inflation in the UK slowed to 10.7% in November from the 41-year high of 11.1% in the prior month and some investors expect that BoE will lose the tightening process. Meanwhile yesterday's Fed lifted rates by 50 bps as expected, however upward revision in interest rate projections strengthened the US dollar.
GBPUSD pulled further away from recent highs at 1.2450 and if current sentiment prevails, support at 1.2150 may be at risk. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
