Pound Rallies Against Dollar on £150Bln Bank of England Stimulus

The sterling pound today rallied against the dollar after the Bank of England decided to expand its quantitative easing programme by more than expected. The dollar’s overall weakness also boosted the GBP/USD currency pair’s rally as vote-counting in the US Presidential elections showed Biden maintaining his lead.
The GBP/USD currency pair today rallied from a low of 1.2938 during the Asian session to a high of 1.3109 during the early American session and was near these highs at the time of writing.
The currency pair surged higher in the early London session after the Bank of England Governor Andrew Bailey announced that the bank would expand its stimulus programme by £150 billion exceeding analysts estimates of £100 billion. The BoE’s Monetary Policy Committee also decided to maintain its base lending rate at 0.1%, which was quite bullish for the pound since the ECB is still on negative rates. The bank also said that it was willing to provide more stimulus if the UK economic situation worsens. The pound was also boosted by reports that UK Chancellor of the Exchequer Rishi Sunak was going to announce a new furlough scheme later today.
The dollar crash today as tracked by the US Dollar Index also fueled the cable’s rally. The contested US Presidential election weighed on the dollar as Donald Trump attempted to stop vote-counting in some states.
The currency pair’s future performance is likely to be affected by the Brexit news and the outcome of the US election.
The GBP/USD currency pair was trading at 1.3092 as at 13:54 GMT having rallied from a low of 1.2938. The GBP/JPY currency pair was trading at 135.74, having risen from a low of 135.08.
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Original from: www.earnforex.com