Pound receives a boost as BoE delay forward guidance statement

The Pound has found some support against the majors following the Bank of England interest rate announcement this lunchtime. The MPC neglected to release a statement on forward guidance and have postponed it until the 7th August, which will coincide with the quarterly inflation report. The Central Bank also left interest rates and quantitative easing unchanged for the month.

There will be widespread speculation ahead of the release of the key inflation report next week and Sterling is unlikely to gain much ground against the majors between now and that release. Nonetheless, the lack of a statement today has a positive impact with the Pound bouncing back above 1.52 against the Dollar and 1.15 versus the Euro.

The one currency that has been sold even more aggressively than the Pound this week is the Australian Dollar and the exchange rate is heading towards a fresh three year high just under 1.70.


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