Pound rallies after BOE maintains size of bond-buying program

07.05.2020 - Evdokimov Roman
Pound rallies after BOE maintains size of bond-buying program

The British Pound Sterling recovered from a two-week low after the Bank of England (BOE) announced that it had decided to maintain the size of its bond-buying program.

The UK central bank had previously slashed its benchmark interest rates to a record low of 0.1% and had pledged to buy a debt of £200 billion ($250 billion).

The Sterling gained 0.2% to $1.2369 at 7:07 AM in London, after it had slipped by nearly 0.3% before the announcement.

The COVID-19 crisis in March brought the Pound to its lowest level since 1985 but has since taken back lost ground in April, last trading at around $1.25. However, the outlook on the United Kingdom’s economy remains gloomy, with the Office for Budget Responsibility seeing a possible 13% contraction in GDP for 2020.

Investors are eyeing the opening of the GILT market at 8:00 AM in London time. GILT futures for June delivery are expected to open between 137.62 and 137.83 depending on the movement from Bund and Treasury futures. Gilt futures last traded at 137.71 on Wednesday.

The briefing with BOE Governor Andrew Bailey will be published two hours later.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?