GBPUSD Tests 1.30 Ahead of BoE Decision

The pound is nearing another milestone in its recovery against the dollar, with the currency approaching the $1.30 level for the first time since September.

Sterling rose against most of its major peers Wednesday and is this year’s best-performing Group-of-10 currency, even as the fallout from Britain’s decision to leave the European Union is starting to show in economic data. This has kept the Bank of England from lifting interest rates despite rising inflationary pressures.

The central bank is scheduled to release its policy decision Thursday alongside its quarterly Inflation Report. The BOE will lift its 2017 inflation forecasts and lower its growth projections this week, according to economists surveyed by Bloomberg, but whether this will mean more Monetary Policy Committee members opting for a hawkish dissent is unclear.

Bloomberg

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.