On a positive note for the GBPUSD, the pair’s low of 1.5840 following the MPC Minutes is just around its previous support base that it had created earlier in the week. Therefore, unless that level breaks and we see the GBPUSD drop to 1.5800, “buy on the dip” demand appears to be remaining intact.
More on the BoE’s Minutes from Daily FX:
A majority of Bank of England board members saw “no reason” to change the central bank’s benchmark interest rate and current quantitative easing program, the BOE minutes revealed today. Board members voted unanimously to keep rates at ultralow levels, while two members supported increasing quantitative easing but were outvoted in a 7-2 vote.
Dovish board members Miles and Posen argued that more is needed to maintain the economy's supply capacity, but the majority of BOE members said they believed increased quantitative easing would send a message that the economy is worse than it actually is.
The minutes on the whole pointed to a relatively unchanged picture as the BOE attempts to juggle lagging growth with inflation risks. The central bank said that recent economic data reveal a “moderate” growth increase in the UK, as the economy begins to turn around after experiencing a massive stunt in growth over the past three years. The BOE said that it sees inflation easing to manageable levels in the coming years; however the central bank referenced “substantial, clear” inflation risks in the short term as political tensions continue to boost oil prices and erode consumer confidence. Read More