GBP/USD Rises as BoE Outlines New Measures but Lacks Follow-Through
After the BoE announced more support measures, the GBP/USD pair began to progress positively. A headwind might be caused by concerns over the budgetary intentions of the UK government and worries about a recession. The USD is supported by aggressive bets on a rate rise from the Fed, and a risk-off mindset should keep gains in check.
On the first trading day of the new week, the British pound to the United States dollar exchange rate halted its recent significant retreat from the area around the psychological level of 1.1500 and attracted some purchasing. Although there is a lack of bullish confidence, spot prices continue to inch upward during the early part of the European day and reach again over the 1.1100 barriers.
The Bank of England has announced several new measures to improve the functioning of the market. These new measures include increasing the limit of its government bond-buying scheme from £5 billion to £10 billion per day and the Temporary Expanded Collateral Repo Facility (TECRF) to alleviate the liquidity squeeze on pension funds that were forced to sell gilts as a result of the market rout that followed the mini-budget.
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