Pound Down, Euro Up after Central Banks’ Decisions
Both central banks decided their monetary policy changes today regarding their main interest rates. Both Bank of England and European Central Bank left their interest rates unchanged — 5.50% and 4.00% respectively as the majority of the market experts were predicting.
As the decisions were expected, they didn’t gave the speculators any surprise to trade on, but the GBP/USD went volatile immediately after the report went public, first gaining more than 50 pips then retracing back, while GBP/JPY went straight south.
Euro reacted more positively after ECB decided to hold the rate at 4%, gaining more than 50 pips and still being in the upper daily range. The decision helped traders to gain the confidence that
And if the European Central Bank’s plan is clear for the traders, BoE’s is still concealed in some kind of mystery as the financial analysts try to guess when the rate cut will happen, while almost everyone is sure that the cut is needed.
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