The Bank of England said Thursday it would continue to monitor inflation, which is expected to temporarily exceed 3 percent in the U.K. but left its monetary policy unchanged for now.
Inflation is expected to strengthen further, to above 3%, before falling back, the BOE warned. It is possible that inflationary pressures will prove to be a bit more pronounced than expected, and even though British inflation was already at 2.1% year-on-year in May, no member of the monetary committee voted to raise interest rates, so the BOE kept its key rate at 0.1%. The British central bank's asset purchase program remains at £895 billion, including £875 billion of government bond purchases.
On the other hand, the support at $1.3680 is a major level for buyers to start a bullish recovery. In addition, the 200-period moving average is providing support to reinforce this key pivot. This price area will therefore be conducive to a technical rebound.
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