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GBP/USD rises after BoE holds rate as MPC vote splits 6-3

GBP/USD climbed above 1.3450 after the BoE held Bank Rate at 3.75%, while USD/JPY later dropped more than 400 pips on suspected intervention.

Reported · Written up by our desk · Major Pairs

The Bank of England held Bank Rate at 3.75% for a fifth straight meeting, but its Monetary Policy Committee vote was split 6-3, with three members backing an immediate quarter-point increase, according to FXStreet.

Following the decision, GBP/USD traded above 1.3450, up 0.71%, after breaking through the 50-day and 200-day exponential moving averages that have converged just under 1.3400.

FXStreet reports that the BoE governor used the press conference to counter any impression the committee was edging toward a hike, reiterating that policymakers want evidence that energy costs are feeding domestic inflation before tightening further.

The session also saw sharp moves beyond sterling, with USD/JPY falling more than 400 pips through 160 on suspected Japanese intervention, dragging the U.S. dollar index down about 0.8% to a seven-week low near 100.

Latest closeUSD/JPY 159.74 ▼2.5%|GBP/USD 1.347 ▲1.4%|Dollar index 99.97 ▼0.8%

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