The Pound plunged to its three-weeks lows. Overview for 20.12.2019
GBPUSD remains weak despite the BoE’s stable monetary policy.
On Friday morning, the British Pound is still under pressure against the USD. The current quote for the instrument is 1.3020.
Yesterday, the December meeting of the Bank of England was over. The entire monetary policy of the British regulator remained unchanged, including the interest rate and Quantitative Easing.
In the comments, the BoE made it pretty clear that it was intending to watch the Brexit talks very closely because this topic was the key issue. In case the Brexit situation remains uncertain, the regulator’s monetary policy may require stimulus measures. That’s when the BoE is going to start interfering.
One should pay attention to the fact that the regulator revised its economic outlook for the fourth quarter of 2019 from 0.2% to 0.1%. As for inflation, it is also expected to slow down and be 1.25%, while the target is 2.0%.
Taken together, all these factors are pushing the British currency. By the way, market players are in anticipation: today the regulator may announce the name of its next governor.