TheÂ Sterling pound today crashed toÂ new lows during aÂ speech byÂ Bank ofÂ England Governor Mark Carney regarding theÂ bank’s interest rate decision. TheÂ GBP/USD currency pair had traded inÂ aÂ consolidative phase following theÂ release ofÂ UK construction industry data before theÂ BoE rate decision.
TheÂ GBP/USD currency pair today crashed from anÂ intra-day high ofÂ 1.3126 toÂ aÂ low ofÂ 1.3034 inÂ theÂ early American session.
TheÂ currency pair was onÂ aÂ downward trend from theÂ start ofÂ today’s session, but begun trading sideways following theÂ release ofÂ theÂ Markit/CIPS UK Construction PMI inÂ theÂ early London session. TheÂ PMI data came inÂ atÂ 55.8, which was way higher than theÂ expected 52.8, indicating that activity inÂ theÂ UK’s construction industry was booming inÂ July. TheÂ Sterling rallied briefly following theÂ interest rate hike affected byÂ theÂ BoE’s Monetary Policy Committee atÂ their latest meeting. TheÂ interest rate decision announced via theÂ monetary policy statement raised theÂ bank rate toÂ 0.75% from 0.50%, while theÂ asset purchase program was maintained atÂ Â£435 billion. TheÂ BoE also released its August inflation report, which had aÂ muted impact onÂ theÂ pair.
TheÂ pair’s rally was short-lived asÂ theÂ pound crashed following Mark Carney’s dovish comments after theÂ rate hike. TheÂ release ofÂ theÂ upbeat US initial jobless claims data byÂ theÂ Department ofÂ Labor had minimal impact onÂ theÂ pair.
TheÂ currency pair’s future performance is likely toÂ be affected byÂ tomorrow’s UK services PMI andÂ theÂ US non-farm payrolls data.
TheÂ GBP/USD currency pair was trading atÂ 1.3057 asÂ atÂ 13:31 GMT having dropped from aÂ high ofÂ 1.3126. TheÂ GBP/JPY currency pair was trading atÂ 145.42 having declined from aÂ high ofÂ 146.59.
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