Pound Strengthens After BoE Holds Interest Rates
The Pound Sterling strengthened against the US dollar on Thursday (July 30) after the Bank of England maintained interest rates at 3.75%. The GBP/USD pair rose approximately 0.4% to 1.3430, supported by a BoE decision perceived as relatively hawkish, as three officials voted for a 25-basis-point rate hike.
The US dollar also came under pressure after the USD/JPY pair plunged more than 400 pips amidst suspected intervention to prop up the yen. The US Dollar Index fell over 0.6% to a 30-day low, allowing other major currencies to appreciate.
From the United States, second-quarter economic growth reached only 1.5%, falling short of the 2.1% forecast. Meanwhile, annual core PCE inflation eased to 3.7% from 4.1%, though it remained well above the Federal Reserve's 2% target.
Consequently, the pound continues to draw support from the BoE's stance and dollar weakness. However, BoE Governor Andrew Bailey emphasized that the decision did not signal an imminent rate hike; thus, the future trajectory of GBP/USD will depend on data regarding inflation, wages, and US consumer sentiment. (arl)
Source: Newsmaker.id
