GBPUSD: Another dip lower on the rollercoaster

GBPUSD: Another dip lower on the rollercoaster

22 October 2014, 15:09
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The Cable has already declined by over 100 pips today from the daily high (1.6130) to trade at 1.6011 at the time of writing. This downside acceleration transpired after the Bank of England (BoE) Minutes release painted a far bleaker picture on the UK economic outlook than previously expected. Although two members of the Monetary Policy Committee (MPC) voted for a rate increase for the third successive month, the language of the Minutes release were clearly dovish. Of note were comments that there have been signs of a slight loss of momentum in the UK economy, weak price pressures remain and the majority of the MPC are feeling that premature monetary tightening measures – such as raising interest rates – would leave the UK economy vulnerable to shocks.
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