FxWirePro: Pound dives after BoE rate cut and massive GDP downgrade
Bank of England lowered its main lending rate to a record-low 0.25 percent from 0.5 percent, in line with market expectations. BoE launched two new schemes, one to buy 10 billion pounds of high-grade corporate bonds and …
Bank of England lowered its main lending rate to a record-low 0.25 percent from 0.5 percent, in line with market expectations.
BoE launched two new schemes, one to buy 10 billion pounds of high-grade corporate bonds and another - potentially worth up to 100 billion pounds.
BoE staff slash growth forecasts by deepest on record: 2017 0.8% From 2.3% (May Forecast)
Most MPC members also expected to cut Bank Rate again this year to a rate "close to, but a little above zero", if the economy performed as poorly as forecast.
GBP dived in response, EUR/GBP up from levels of 0.8345 to highs of 0.8457.
Next hurdles align at 0.8492 (Aug 2 high), 0.86 and then 0.8627 (July 6 high).
Recommendation: Good to go long on dips, SL: 0.83, TP: 0.8490/ 0.86
