GBPUSD bounced off daily lows after fresh comments from BoE Governor Bailey, who eased expectations that the central bank is ready to pause or pivot rate hikes, pointing out that there is still some way to go in taming inflation. Bailey told CNBC that the omission of the word “forcefully” from its forward guidance was not a sign that “we’re done.” “I’m not saying that this is it, we’re done, because the world is too uncertain at the moment,” he added.
The British pound faced a noticeable selling pressure after today's BoE rate decisions, as the market got the impression that the UK central bank was preparing for a possible dovish pivot, however a downward move lost some of its steam after Bailey remarks. GBPUSD erased some of the early losses and jumped above local resistance at 1.2285. The question is, whether markets will take Bailey's statement for granted, taking into account the worsening outlook for the British economy?
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
GBPUSD, H1 interval. Source: xStation5
This 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.
