Sterling Pound Trades Sideways on BoE Rate Decision, Later Declines

The  Sterling pound today traded sideways immediately after the  Bank of  England announced its interest rate decision, which was in  line with expectations. The  GBP/USD currency pair headed lower afterwards even as  investors adjusted to  the  rate decision while looking forward to  other fundamental triggers.
The  GBP/USD currency pair today traded in  ranged between a  low of  1.3026 and  a  high of  1.3071 and  was on  a  downtrend at  the  time of  writing.
The  currency pair rallied higher from the  early European session in  a  move that was largely driven by  Brexit developments. The  pound was boosted by  the  fact that the  EU is open to  changing its stance on  the  Irish border, which favors the  likelihood of  a  Brexit deal. The  monetary policy decision by  the  BoE did not have an  immediate negative impact on  the  cable as  the  announcement was in  line with expectations. The  BoE’s Monetary Policy Committee unanimously voted to  leave the  key lending rate unchanged at  0.750%. The  MPC also maintained the  asset purchase facility at   £435 billion and  corporate bond purchases at   £10 billion, which was also expected.
The  pair later headed lower due to  shifting market sentiment in  favor of  the  US dollar as  tracked by  the  US Dollar Index. This indicates that most investors expect favorable releases from the  US docket later today.
The  currency pair’s short-term performance is likely to  be affected by  the  release of  the  US CPI and  jobless claims data later today.
The  GBP/USD currency pair was trading at  1.3053 as  at  11:47 GMT having risen from a  low of  1.3026. The  GBP/JPY currency pair was trading at  145.58 having rallied from a  low of  145.01.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.