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Pound Suffers at Hands of BoE’s Dovish Shift

Sterling set a fresh four-month low on Thursday, staying on the defensive after the Bank of England surprised investors the previous day by signaling it was in no hurry to raise interest rates.

The pound touched a low of $1.6668 GBP=D4, its lowest level since mid-April, and down 3 percent from a near six-year high of $1.7192 touched in mid-July. It last traded at $1.6680, down about 0.1 percent on the day.

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

Reuters [1]

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