GBP/USD at fresh Feb highs

By FXStreet GBP/USD has been quite a show this week. Making new highs today for the month.

James Knightley, analyst at ING Bank explained that the Bank of England voted unanimously to leave Bank Rate at 0.5% and the size of the asset purchase facility at £375bn.

“It is very interesting that the BoE have decided to finally express a view on Brexit with ”Leave” campaigners likely to be up in arms that they have come off the fence. The BoE acknowledge that the Brexit vote has weighed on sterling and may “also delay some spending decisions and depress growth of aggregate demand in the near term”. This is nothing more than stating the obvious, but it could be the first step into what could become a more concerted campaign to highlight the economic risks.”

Meanwhile, tuning to next week, analysts at TD Securities explained that after an uneventful Bank of England meeting, they expect an uneventful inflation number this week.” Core inflation in February likely repeated January’s 1.2% y/y print, while the headline measure likely remained unchanged at 0.2% y/y. While this is below the Bank of England’s recent 0.5% estimate, the downside miss largely reflects declines in oil prices seen …read more

Source:: FX Street