On Wednesday (Oct 12), / fell sharply, temporarily trading at 1.0945, down 0.25%.
The governor reiterated that the bank would end its emergency bond-buying programme on Friday and told pension fund managers to complete rebalancing their positions within that time frame.
This has fuelled fears that the Bank’s exit could reignite market volatility around the world, leading to financial instability.
Bank of England Governor Bailey told pension fund managers to finish rebalancing their positions by Friday, when the central bank will end its emergency support program for the U.K. bond market.
Earlier on Tuesday, the Pensions and Life Savings Association, an industry body, urged the Bank of England to extend its bond-buying programme until October 31 “and possibly beyond”.
The pound fell to a two-week low of $1.0962, down 0.9%, after Bailey spoke.
GBP/USD needs to rise above 1.1100 (psychological level, 20 SMA on 4-hour chart) and above 1.1140 (Fibonacci 38.2% retracer level on latest uptrend, 100 SMA).
