âŹHawkish comments from BoEâs Saunders boost Pound
GBPUSD pair rose sharply following comments from BOE's Saunders, which said that it may become appropriate fairly soon to withdraw some stimulus. Saunders also noted that activity seems to have recovered a bit faster than May forecast. Risks lie on the side that the output gap will close earlier than previously expected. The issue of early QE reduction will be discussed at upcoming meetings.Options to withdraw stimulus include curtailing QE (ending it in the next month or two) and/or further policy action next year. Saunders also stressed that if the bank rate rises in the next year, it is likely that any increase will be relatively limited.
GBPUSD pair jumped from 1.3840 to a session high of 1.3899 and broke above the upper limit of the triangle formation. Upward move may accelerate even further if buyers will manage to break above resistance at 1.3909. Source: xStation5
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