Sterling retreats on Dovish BoE, Stronger US Dollar

The major central banks’ monetary policy announcements cause the pound sterling to plunge sharply against the US dollar, hitting a new low that hasn’t been seen in two weeks. The market took a wrong turn on Thursday after the Bank of England became more dovish. As of this writing, the GBP/USD exchange rate is down 0.97% at 1.2659.


The US Dollar (USD) saw a significant decline in value relative to the Pound Sterling (GBP) after major central banks released their policy decisions on Wednesday, but eventually, on Thursday the DXY Index is soaring 0.64% up and is trading at the 104.034 level. The dovish position taken by the Bank of England (BoE) on Thursday caused a big move in the currency pair. It is clear that important decisions made by central banks are causing notable changes in currency values.

The fundamental change is reflected in the price action of the GBP/USD pair. The negative pattern established by the currency pair suggests that the Pound may continue to decline. The US dollar seems ready to rise, and if the decline persists, it might test important GBP support levels.