Once again, the Bank of England is disappointing Forex traders, and that is leading to a lower pound today. With a rate hike nowhere in sight, there is little to help the sterling against its major counterparts.
No one seriously expected the Bank of England to announce rate hikes anytime soon, but there were some hopes that the wording of the MPC minutes from the latest meeting would offer some hopeful forward guidance.
Instead, the minutes underscore that most of the members of the MPC feel that rates should not be hiked. Additionally, the notes from the minutes indicate that it will be quite some time before the BOE raises rates. The UK economy is slowing, and policymakers feel that a rate hike would shock the economy, and slow it further.
On top of this, risk appetite is low today. Stocks are struggling and there are questions about what is next in terms of the global outlook for ebola, as well as the fate of the Middle East and Balkan states surrounding Russia. Slowing in China, and continued concerns about the eurozone weigh as well.
At 10:50 GMT GBP/USD is down to 1.6051 from the open at 1.6113. EUR/GBP is up to 0.7908 from the open at 0.7893. GBP/JPY is down to 171.7640 from the open at 172.4150.
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