TheÂ British pound today rallied higher against theÂ US dollar after theÂ Bank ofÂ England announced its monetary policy decision with more members than before voting forÂ aÂ rate hike. TheÂ pound had traded lower following theÂ release ofÂ theÂ disappointing UK public sector finances report forÂ May early inÂ theÂ European session.
TheÂ GBP/USD currency pair today rallied from aÂ low ofÂ 1.3103 toÂ aÂ high ofÂ 1.3258 after theÂ BoE rate decision, which was interpreted asÂ being hawkish.
TheÂ currency pair jumped higher after theÂ BoE left its monetary policy unchanged, but reported that three members had voted forÂ aÂ rate hike. TheÂ BoE’s Monetary Policy Committee left its bank rate atÂ 0.50%, its asset purchase facility atÂ Â£435 billion, andÂ its corporate bond purchases atÂ Â£10 billion. However, three MPC members Michael Saunders, Andy Haldane andÂ Ian McCafferty voted inÂ favor ofÂ aÂ rate hike, which is what triggered theÂ pair’s rally. TheÂ pound had traded lower after theÂ Office forÂ National Statistics announced that public sector net borrowing fell toÂ Â£5bn inÂ May, down Â£2bn from aÂ year earlier.
TheÂ release ofÂ theÂ positive US initial jobless claims data byÂ theÂ Department ofÂ Labor inÂ theÂ early American session had aÂ muted impact onÂ theÂ currency pair. TheÂ Philadelphia Fed Manufacturing Business Outlook missed expectations but did not affect theÂ pair’s performance.
TheÂ currency pair’s short-term performance is likely toÂ be affected byÂ theÂ BoE Governor Mark Carney‘s Mansion House speech scheduled forÂ 20:15 GMT.
TheÂ GBP/USD currency pair was trading atÂ 1.3250 asÂ atÂ 13:37 GMT having rallied from aÂ low ofÂ 1.3103 earlier today. TheÂ GBP/JPY currency pair was trading atÂ 145.91 having risen from aÂ low ofÂ 144.58.
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