Pound Weak vs. Dollar Even as BoE Maintains Monetary Policy Stable

The Great Britain pound fell against the US dollar today even as the Bank of England maintained the monetary policy the same, refraining from additional easing. The currency rose against the euro and the Japanese yen though.
The BoE kept its benchmark Bank Rate at 0.5 percent and the asset purchase program at £375 billion at today’s meeting. Such decision was anticipated by market participants.
The behavior of the pound against the dollar was less predictable though. The stable monetary policy should be considered beneficial for the currency, but the sterling fell nonetheless. Today’s data made the drop even more puzzling as the report about industrial and manufacturing production was good and should have helped the currency.
GBP/USD slipped from 1.5532 to 1.5449 as of 22:38 GMT today. EUR/GBP ticked down from 0.8465 to 0.8438. GBP/JPY advanced from 153.75 to 155.55, the highest settlement since August 2009.

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