Can FOMC do Same?
Fundamental Forecast for British Pound: Neutral – British Pound Dives as Bank of England Boosts Quantitative Easing – Higher Producer Prices report fails to lift GBPUSD – View our Monthly British Pound Exchange Rate Forecast The British Pound finished the week nearly unchanged against the resurgent US Dollar, as an impressive GBP rally gave way to a sharp reversal on surprise Bank of England announcements. BoE officials took markets by surprise in announcing an expansion to their Quantitative Easing measures, boosting the total size of their asset purchase program by a further £50 billion to £175 billion. Forex traders instantly showed their displeasure with the announcement and sent the GBPUSD over 200 pips lower in the short moments following the release. Few were willing to subsequently buy into the GBP declines, and indeed the suddenly-downtrodden currency pair fell even further on to finish the week’s trade. Short-term GBPUSD momentum points to further losses, but it will be impor
