GBP/USD Drops to 1.6675 after BOE Dovish Shift

Sterling languished at four-month lows early on Thursday, having taken the honours of the worst-performing major currency after the Bank of England signalled it was in no hurry to raise interest rates.

The pound traded at $1.6688 GBP=D4 after suffering a 0.7 percent drop on Wednesday. It plumbed a near seven-week low at 80.20 pence per euro EURGBP=R and slid 0.7 percent on the yen to 170.79 EURJPY=R.

Wrong-footing the market again, Governor Mark Carney indicated that wage developments would be key to the exact timing of a rate move as the BOE slashed its forecast for wage growth.

Reuters

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