BoE Eases Interest Rates, But Hawkish Tone Lifts GBP/USD
The GBP/USD currency pair showed subdued movement after the Bank of England (BoE) decided to cut interest rates with a cautious (hawkish) approach, pushing the pound to a strong position against the US dollar.
The BoE cut interest rates by 0.25% to 4.00%, but the hawkish tone actually strengthened sterling. The monetary policy committee was split—four members favored a steady rate, four a cut, and one member favored a more aggressive cut—implying caution in managing inflation risks.
The US dollar also weakened due to the Fed's rate cut signal, reinforced by the appointment of a dovish candidate for governor.
The pound held above 1.3400 after rebounding from an intraday support zone.
Technical indicators show strong bullish momentum. Following the BoE's announcement, GBP/USD broke through resistance above 1.3400 and now opens the door to a move towards the psychological level of 1.3500.
Source: Newsmaker.id