Session Recap: Majors stable, GBP soars in the BoE aftermath

FXstreet.com (Córdoba) - With the main exception of the Sterling, major currencies continue in quiet consolidation, trading within its recent ranges.

BoE links rate move to unemployment rate

GBP/USD wavered sharply and then rose to a fresh 7-week high of 1.5490 after the BoE Inflation Report where the bank introduced forward guidance. The BoE effectively signaled rates will be low for longer, and they will be revised when the unemployment rate reaches 7.0%. The dovish forward guidance is contingent on UK CPI inflation remaining restrained.

Meanwhile, the EUR/USD is a tad softer around 1.3290/1.3300, despite having spiked to 1.3325. The yen was also in demand, with USD/JPY dropping to a 7-week low of 96.76 before recovering slightly.

The AUD/USD failed once again at the 0.9000 resistance area and pulled back, while USD/CAD reached a 3-week peak of 1.0429.

Main Headlines in Europe:


Fed Heads jawboning keeping rates higher, but greenback not following suit - yet

Flash: What does the EUR/USD have to offer? – Commerzbank and UBS

Switzerland: Annual CPI flat in July

Bourses in Europe in red, EUR offered

BoE's interest rates conditional on unemployment levels

Germany: Annual Industrial Production rises 2% in June

Rehn urges Spain to reduce salaries

UK Bonds and Pound mixed on Carney