The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Low interest in MPC results
Yesterday’s results from the last Monetary Policy Committee meeting barely caused a ripple of excitement in GBP/USD, as once again nine voted to keep rates unchanged and none voted for an increase. In order for there to be any chance of the Bank of England increasing the interest rate before the end of the year, we will need to see some sort of shift in mentality sooner rather than later.
Subsequently GBP/USD has continued to drift at a fairly sedate pace back down to the $1.70 level. At this point it is likely to find support from both the 50-day moving average and the longer-term resistance that had previously been there.
Although in the short-term it might be drifting, the longer-term outlook remains to the upside as interest rates will rise sooner or later.