Sterling was heading for a third straight day of gains against the Swiss franc on Friday on widening policy divergence between the BOE and the SNB. But a souring market mood helped cap the rally.
The BOE kept interest rates steady at a 16-year high of 5.25% ahead of a July 4 election, but some policymakers said their decision not to cut rates was now "finely balanced".
When a loosening cycle begins will continue to depend on how wage growth and services inflation evolve. Data showed consumer prices in the UK finally slowed to the 2% target in May.
However, economists warned that the drop in headline inflation might prove fleeting, as the impact of falling energy prices wears off. The BOE predicted the reading to rise again later this year.
Elsewhere the SNB cut interest rates for the second time running, pointing to easing price pressures that allowed it to maintain its position as a front-runner in the global policy easing cycle now underway.
The central bank also revised down its inflation forecast to an average of 1.3% this year. After the decision, economists said one more quarter-point move in September a possibility.
The pair failed to break above the immediate resistance at 1.1320 so it seems too early to call a reversal. Another dip below 1.1275 may drive it to 1.1220.
EBC Economic Research Findings Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Financial News or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
더 오래된 의견은 없습니다. 소파를 가장 먼저 잡으십시오.