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12:36 PM · 10 October 2022

GBP resumes downward move despite additional measures from BoE

GBP/USD
Forex
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BoE surprised the markets today with a decision to increase the limit of daily purchases of bonds as part of the emergency purchases, which is expected to last until the end of this month. BoE now has the ability to buy up to £ 10bn worth of bonds, while previously it was £ 5bn. Interestingly, in the last few auctions, the BoE announced its readiness to buy bonds worth GBP 40 billion, but only made purchases for GBP 5 billion. Let us remind you that the program is to last until the end of this week.

Interestingly, the UK regulator FCA asked for daily reporting of any irregularities in financial conditions on long-term bonds and related markets.

The market is starting to lose confidence in the pound again. Gilts are approaching the lows of September 27th and 28th.

Source: xStation5

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