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Forex: EUR/GBP eases to 0.8647/48 after BoE

After briefly touching the 0.8700 level (intraday maximum) for the first time since February, the EUR/GBP has fallen nearly 45 pips on the heels of the BoE announcements. In these moments the pair has settled at 0.8647/48, still trading positively up +0.13%.

In the United Kingdom, the BoE Asset Purchase Facility has reported a figure of £375B, which matches a consensus figure. In addition, the BoE left rates unchanged, opting to continue its course of a 0.5% interest rate.

“The EUR/GBP is trading above Linear Regression Indicators as well as above the Exponential Moving Average 50. However, the cross is operating below the bullish channel's support, while the stochastic is also negative, conflicting with LRIs therefore, we prefer to stand neutral for today.” writes the ICN.com analyst team.

Mataf.net analysts point to resistances at 0.8679, followed by 0.8697, and eventually 0.8727. Conversely, a movement lower and consequent paring of todays gains will result in the testing of supportive measures at 0.8631, then 0.8601, and finally 0.8583.

United Kingdom BoE Asset Purchase Facility flat at £375B

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UK: BoE keeps policy unchanged, rate at 0.5% and QE at £375B

The BoE has decided to keeps its monetary policy unchanged at this month's meeting that took place today. The last time the central bank added QE was on 5 July 2012, by £50B to the total of £375B. “The Bank will continue to offer to purchase high-quality private sector assets on behalf of the Treasury, financed by the issue of Treasury bills, in line with the arrangements announced on 29 January 2009 and 29 November 2011”, said the statement.
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