13 May 2015
GBP/USD dips to 1.5658 on BOE QIR
FXStreet (Mumbai) - GBP/USD quickly bounced-off a brief dip below 0.57 handle and turned back in green in the mid-European session, in a knee-jerk reaction after the BOE unexpectedly revised down its medium-term CPI projections and seemed less upbeat on the UK economy.
GBP/USD wavers below 0.57
The GBP/USD pair trades 0.10% higher at 1.5685., recovering from session lows at 1.5658 reached post BOE report. The cable erased gains and fell in red immediately after the much await BOE quarterly inflation report (QIR) surprised markets on the downside.
In today's Inflation Report, the BoE revised down wage growth for 2015 and said it sees CPI inflation rising "notably" and hit the 2% target in Q2 2017.
The BoE revised slightly upwards its short-term inflation outlook, but unexpectedly revised down its medium-term CPI projections, while economy is seen growing slower than estimated in February.
Market now tunes into bank Governor Mark Carney's comments about the growth and inflation forecasts for the UK economy.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5700 above which gains could be extended to 1.5757 (Dec 17 High) levels. On the flip side, support is seen at 1.5650 below which it could extend losses to 1.5600 levels.
GBP/USD wavers below 0.57
The GBP/USD pair trades 0.10% higher at 1.5685., recovering from session lows at 1.5658 reached post BOE report. The cable erased gains and fell in red immediately after the much await BOE quarterly inflation report (QIR) surprised markets on the downside.
In today's Inflation Report, the BoE revised down wage growth for 2015 and said it sees CPI inflation rising "notably" and hit the 2% target in Q2 2017.
The BoE revised slightly upwards its short-term inflation outlook, but unexpectedly revised down its medium-term CPI projections, while economy is seen growing slower than estimated in February.
Market now tunes into bank Governor Mark Carney's comments about the growth and inflation forecasts for the UK economy.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5700 above which gains could be extended to 1.5757 (Dec 17 High) levels. On the flip side, support is seen at 1.5650 below which it could extend losses to 1.5600 levels.