GBP/USD falls on BoE QIR headlines

FXStreet (Córdoba) - GBP/USD came back under pressure and retraced its post-unemployment data gains weighed by first BoE Quarterly Inflation Report headlines.

The Bank of England cut its forecasts for growth and inflation and signaled the bank expects to start to hike interest rates later than previously anticipated, maybe Q3 2015 based on market expectations, taking the benchmark rate to just under 2% by the end of 2017.

GBP/USD dropped back below the 1.59 mark amid dovish remarks and it is currently trading at 1.5890, where it is 0.17% below its opening price.

Nov 12, 2014

Quarterly Inflation Report: Inflation and growth rate projections down

The expansion in UK domestic demand has continued. But the outlook for global growth has weakened. Some asset and commodity prices have fallen, as have market interest rate expectations. Growth is projected to be a little weaker than in August. It slows slightly in the near term, settling back to around historical average rates, underpinned by a gradual pickup in demand abroad and a revival in productivity and real household income growth at home.

Nikkei ends at a fresh 7-year high

The Japanese equity markets rose to a fresh 7-year high on rumors that Prime Minister Abe will delay the second sales tax hike in order to avoid damaging the Japanese economy.