The Pound is staying at six week’s highs. Overview for 22.03.2018
GBPUSD has been growing for the second consecutive trading session; investors’ reactions to the BoE’s decision were quite neutral.
On Thursday, the British Pound is rising against the USD. The current quote for the instrument is 1.4148. Today’s high was at 1.4220.
The statistics from the United Kingdom published in the afternoon supported the national currency. The Retail Sales expanded by 0.8% m/m in February after losing 0.2% m/m in the previous month and against the expected reading of +0.4% m/m.
Later, there was a meeting of the British regulator, where it was decided to keep the benchmark rate unchanged at 0.50%. The volume of the QE program also remained the same, £435B. Both decisions were approved unanimously.
After analyzing the numbers on the British inflation published last week, the Bank of England may not have to revise the key rate in the nearest future. The market can do it on its own, because the Consumer Price Index is slowing down. This provides the regulator with an opportunity not to rush things and take its time.
The British Pound might as well reach stability near 1.4150, but later – continue moving upwards. The basic risk is still the Brexit.
RoboForex Analytical Department
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