Cable jumps by 70 pips from 1.3570 to 1.3640
It is looking more and more likely that negative rates may not be part of the latest cycle for the BOE as they once again play down expectations of that but left a gap in the door just in case they need to revisit the issue if economic conditions worsen.
The key point in the policy decision today is that the BOE said that its actions should not be taken as a signal that negative rates are coming and that has seen a push back in rate expectations, with money markets paring back said pricing.
As such, the pound has gotten a modest lift from the policy statement but looking at cable, it really isn't leading to much for the time being.
Price is now trading back to 1.3630-40 levels but sellers remain in near-term control and unless buyers can take on the key hourly moving averages @ 1.3671-83, the gains here could fade as we look towards North American trading later.
Over to EUR/GBP, price has dipped back below 0.8800 and that is the clearer trade if one is to focus on the pound extending any upside momentum on the BOE.
