British Pound: Buckle Up for GBPUSD Breakout on 3Q UK GDP So far this week, two notable Bank of England-related developments have pushed the sterling into position for a much larger trend development. Today’s third quarter GDP data may be the spark that completes the sequence. Interest rate expectations have afforded the pound substantial strength to counteract sizable swings in risk trends and even mute fundamental crosswinds. Yet, neither the BoE Minutes or Governor Carney’s meeting this past session materially altered the currency’s holdover performance from last week. The statement delivered by the central bank head, however, was quite remarkable for rate watchers. Against speculation of an advancing rate hike, Governor Carney announced an expansion of support for the banking sector. A reduced price at the discount window, longer and cheaper loans and allowance for a broader range of collateral is a substantial move. And, while it is not example stimulus, it speaks to easing the reins rather than tightening.
Posted on: Fri, 25 Oct 2013 07:31:03 +0000