GBP/USD Rises Following Remarks by BoE’s Bailey

The Bank of England is realistic in facing the current circumstances, seeing the challenges coming with negative interest rates without ruling them out as an option to help the British economy in the face of the COVID-19 crisis, the Governor of the Bank of England, Andrew Bailey, said on Tuesday.

“That does not mean to say that we rule out using negative interest rates for a moment,” Bailey said in an online speech given to Queen’s University Belfast on Tuesday.

“It means to say we are realistic enough, I think, to know that the transmission mechanism would be affected.”

The British Pound (GBP) rose against the US Dollar (USD) after the recent speech by Bailey today, before showing some fluctuations.

The GBP/USD pair is trading marginally higher for the day by 0.06% at 1.2842.

The pair which closed Monday at 1.2834 has been trading today between 1.2823 and 1.2903.

Support Levels: 1.2740 – 1.2647 – 1.2552

Resistance Levels: 1.2928 – 1.3023 – 1.3116