BoE promise of “modest” policy tightening | 09 Agosto 2021
09 Agosto 2021, GBP/USD
GBPUSD trading plan:
British two-year gilt yields jumped to their highest since April 2020 on Friday and 10-year yields also rose sharply, pushed higher by a Bank of England promise of “modest” policy tightening. Two-year Gilt yields rose as high as 0.162%, close to levels last seen during a period of market turmoil at the start of the COVID-19 pandemic which prompted the BoE to restart its bond purchase programme. “We do think it’s more likely than not that some moderate tightening of policy ... will be necessary,” BoE Deputy Governor Ben Broadbent told businesses.
Investment idea: buy 1.3850 and take profit 1.3900.
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