The Sterling jumped against the US Dollar more than 100 pips or 0.76%, just after the Bank of England's monetary policy decision was announced on Thursday, and continued to appreciate further.
The BoE stated that the interest rate needed to be increased sooner and by more than it was thought three months earlier, as the Bank raised economic growth expectations for Britain amid the solid global recovery. The Bank of England anticipated the economy to expand 1.75% year-on-year in average over the next couple of years. The sluggish outlook of the UK was attributable to weaker growth in labour force amid the UK aging population and fewer immigrants coming into the country. Meanwhile. Pay growth would rise to 3% by the end of this year, as projected.
| Historical Data Table: BoE Interest Rate Decision | Economic Calendar for 09.02.2018 | ||||||||
| Date | 15.06.2017 | 14.09.2017 | 02.11.2017 | 14.12.2017 | 08.02.2018 | 9:30 AM | UK Manufacturing Production | ||
| Actual | 0.25% | 0.25% | 0.25% | 0.50% | 0.50% | 1:30 PM | Canada Unemployment Rate | ||
| Forecast | 0.25% | 0.25% | 0.25% | 0.50% | 0.50% | 4:45 PM |
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| Initial Reaction on Main Pairs | SWFX Sentiment Indexes | ||||||||
| Open Price | Close Price | % Change | Longs | Shorts | |||||
| GBP/USD | 1.38837 | 1.39899 | 0.76% | GBP/USD | 43.35% | 56.65% | |||
| EUR/GBP | 0.88168 | 0.8756 | -0.69% | EUR/GBP | 49.48% | 50.52% | |||
| GBP/CAD | 1.74723 | 1.76027 | 0.75% | GBP/CAD | 26.88% | 73.12% | |||
| GBP/JPY | 152.236 | 153.388 | 0.76% | GBP/JPY | 35.94% | 64.06% | |||