The minutes from the last meeting of the US Federal Reserve revealed a continuing bias toward further rate rises, while also acknowledging that after 14 consecutive rises, the ledning rate now ” seemed close to what it needed to be given the current outlook”. The new Fed’ chariman has started his tentureship with some relatively hawkish speak, but this was expected, and the dollar has hardly moved over the last few days.
The Bank of England minutes released this morning were also broadly in line with expectations. The nine member panel of the Monetary Policy Committee voted 8-1 to keep rates unchanged, with the lone dissenter, Stephen Nickell voting for a cut for the third consecutive meeting. It had been rumoured that Kate Barker would join Nickell in voting for a cut.
The markets remains relatively unchanged, with some moderate sterling strength yesterday, bringing the inter-bank rate toward 1.4660.
GBP EUR – Support 1.4545 then 1.4500
Resistance 1.4670 then 1.4735
GBP USD – Support 1.7400 then 1.7315
Resistance 1.7490 then 1.7575
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