GBP/USD back into negative territory after BoE statement
- Bank of England is monitoring developments in financial markets.
- Pound remains under pressure, still looking for support.
- GBP/USD back under 1.0700, heads for record low close.
The GBP/USD pair is at the lowest level since the European session following a statement from the Bank of England and also amid risk aversion. Cable is back into negative territory trading around 1.0660, down almost 200 pips from Friday’s close.
On Asian hours the pound suffered a historic drop to 1.0315, a record low and then rebounded 600 pips. The recovery lost momentum and GBP/USD is back under pressure.
The dramatic depreciation of the pound weighed on global market sentiment on Monday and also prompted a statement from the Bank of England. The central bank said it is monitoring development in financial markets very closely and welcomed government’s commitment to sustainable economic growth. The comments did not help the pound which lost momentum afterwards.
Equity markets also turned to the downside during the last hours also affecting the pound, that has become more sensitive to risk aversion. In Wall Street the Dow Jones is falling by 1.05% and the Nasdaq 0.43%.
Technical levels