The Monetary Policy Committee in the UK left the interest rate and the QE program unchanged, as expected. The interest rate has remained at a level of 0.50% since early 2009. The Asset Purchase Facility stands at 375 billion pounds for quite a while as well.
GBP/USD remains in relatively low ground, at 1.6340.
The pound hasn’t been able to break higher after reaching a double top at 1.6440. In addition, it had two shooting stars. These are bearish technical signs in the short run.
Services PMI yesterday came out below expectations after a period of good data. Nevertheless, the general direction of the UK economy is positive, as also reflected in the Autumn Statement released earlier.
The focus now shifts to the ECB rate decision.
