Wednesday, 9 September 2015

GBP/USD rate remains flat ahead of BoE decision

Good afternoon,

After all the recent turmoil which has surrounded the currency markets over the past month, today has been relatively low key with the GBP/USD cross trading in a half cent range.

The currency pair spent the day sitting between $1.5350 and $1.54 as you can see from the graph below, however that could all change tomorrow as the markets turn their attention to the Bank of England monetary meeting.

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Only weeks ago Bank of England Governor Mark Carney hinted that a rate rise in the UK was on the horizon, which was then backed up in Augusts MPC meeting when one member voted in favour of an immediate rate hike.

I don't think anyone is expecting the Bank of England to raise their benchmark anytime soon, concerns over global growth and an economic slowdown in China have put pay to that. The pound could come under pressure if the MPC rate vote reverts back to 9-0 after only one month.

If that were to happen we could easily see the pound lose some of the ground it has made against the dollar in the last few days and I wanted be surprised if we see GBP/USD drop back towards $1.52 mark.

I will keep you posted of the developments tomorrow but in the meantime if you have a requirement to buy or sell dollars in the coming weeks and want to make sure you are making the most from your transfer, use the link below to complete the contact form all call me directly on 0044 (0) 1442 892 065.

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