In the Asian session on Wednesday (November 9), GBP/USD fell and was temporarily reported at 1.1533, down 0.08%. Although the Bank of England is expected to raise interest rates in December, the economic crisis still limited the pound’s gains.
Bank of England dynamics
Bank of England chief economist Huw Pill (Huw Pill) said on Tuesday that the sharp decline in the size of the British labor force has put upward pressure on inflation in the country, which means that the Bank of England will raise interest rates further in the future. Peel pointed out that the dramatic reduction in the number of workers is a real shock to the economy. And said the Bank of England is particularly concerned that inflation expectations may be higher than the target level, that is, expectations are no longer anchored. Policymakers must prevent a wage spiral. The shrinking labor force is one of the reasons the Bank of England decided to continue raising interest rates.
GBP technical analysis:
The rate hike in the UK on Thursday was in line with expectations, but the rate hike in the later period could not be sustained, and the pound rose and fell back. Pressure: 1.1850—-1.20 Support: 1.1330—-1.100
