GBP/USD Trades Steady After BOE Keeps Rates on Hold

The Pound is trading steady against the US dollar after making a gain in the previous session following the BOE's decision to hold interest

Arslan Butt•Friday, January 31, 2020•1 min read

GBP/USD Trades Steady After BOE Keeps Rates on Hold

On the day of Brexit, the Pound is trading steady against the US dollar after making a gain in the previous session following the BOE’s decision to hold interest rates steady. At the time of writing, GBP/USD is trading at around 1.309.

On Thursday, the BOE MPC voted to keep rates steady even as markets anticipated a possible rate cut announcement on the back of recent weak economic data releases. However, the Bank of England slashed Britain’s economic growth forecasts for this year down to 0.8% this year from 1.3% in 2019, but expects growth to pick up to 1.5% in 2021.

GBP/USD is also holding steady after gaining around 0.5% following the release of a weak GDP report from the US on Thursday. The latest GDP report revealed that the US economy managed to grow at 2.3% in 2019 and by 2.1% in Q4 2019, lower than the 2.9% growth seen in 2018 and well below the 3% target set by the Trump administration.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.