GBP/USD still comfortable above 1.2850
The pair GBP/USD is under new selling pressure. It slipped below the 1.2900 level to new daily lows after the announcement of the Bank of England.
Unsurprisingly, the BoE has left its benchmark interest rates and asset purchase facility unchanged at 0.10%. In the accompanying monetary policy statement, the UK central bank has reiterated the risk of a more extended period of high unemployment and recognized an uncertain growth outlook.
The statement has further revealed that the Bank of England will continue to review several possible actions. And discuss the effectiveness of negative interest rates. The statement has taken its toll on the British pound. It is considered as a critical factor behind the GBP/USD slump around 70-75 pips in the last hour.
The US Philadelphia Fed Manufacturing Index could boost the dollar
The news reported that Britain offered tentative concessions on fishing in trade talks with the European Union last week. Meanwhile, on Thursday, European Union Brexit negotiator Michel Barnier commented that the UK’s move on fisheries acts as a ray of hope. He still believes a deal is possible. However, events have done little to impress the GBP bulls.
On the other hand, the US dollar has had to capitalize on its strong post-FOMC recovery movement. It has been seen fluctuating within a narrow trading range during the European session. This, in turn, has not provided any significant momentum, with sterling price dynamics acting as the sole catalyst for the momentum of the GBP/USD pair on Thursday.
Market participants are now looking forward to the US economic calendar. Forecasts wait for the featuring release of the Philadelphia Fed Manufacturing Index, initial weekly jobless claims, and housing statistics, with building permits. The data could influence the dollar and generate short-term trading opportunities at the beginning of the American session.
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