On Friday, the GBP/USD pair is trading upwards; investors are waiting for the Brexit procedure to start.
The British Pound has been growing against the USD for the third consecutive trading session. The current quote for the instrument is 1.2368.
The British Pound situation has been pretty interesting over the last several days. For example, earlier this week, the Parliament allowed the Government to use Article 50 of the Treaty of Lisbon and start the procedure of exiting the European Union. The following day, the Brexit law was signed by the Queen as well – this was more psychological matter than necessary.
On Thursday, the BoE has another meeting, the results of which caught the market’s attention, although unexpectedly. The interest rate remained the same, 0.25%, but in the comment the regulator didn’t exclude a possibility of increasing it earlier than planned. 8 members voted to keep the rate unchanged, 1 voted against, although a month ago the results were 9 to 0.
Those, who are in favor of increasing the rate earlier, say that there might be a necessity to decrease the QE program if the economy shows some internal impulse. In other words, a more energetic inflation along with increasing economic activity may replace the QE effect. However, this strategy contains too many “Ifs”. This is probably why those, who are in favor, aren’t so many right now.
Nevertheless, it was enough for the Pound. After declining to two months’ lows in March, any positive factors will help the GBP to rebound.
RoboForex Analytical Department