Fundamental analysis
07 February, 2019
Research Department
GBP/USD fell further on Thursday to test its lowest rate in almost three weeks (1.28516). The Bank of England (BOE) held its benchmark interest rates steady on Thursday, with just 50 days to go before the U.K. leaves the European Union. As widely expected, the BOE’s nine-member Monetary Policy Committee (MPC), led by Mark Carney, unanimously voted to leave interest rates unchanged at 0.75%. “U.K. economic growth slowed in late 2018 and appears to have weakened further in early 2019,” policymakers at the central bank said. On Brexit, Prime Minister Theresa May was in Brussels on Thursday to plead with EU leaders to change the Brexit divorce deal she negotiated last year, in order to get it through parliament, after they offered little hope they were willing to do so. The London parliament, which rejected May’s agreement by the biggest majority in modern British history, has voted to renegotiate the deal, replacing a provision that some fear could keep British-ruled Northern Ireland under EU rules indefinitely. Later this afternoon, US Initial Jobless Claims will be released.
