The British pound continued its decline to near a 4-month low against the US dollar after the Bank of England kept interest rates unchanged at 0.5% as expected, but reduced growth and inflation expectations this year and next.
The GBPUSD is currently trading at the 1.3530 levels, and we may see further declines technically if the support level at 1.35 broken and we might target the 1.33 levels. The pound fell from its highest level since the Brexit vote at 1.44 amid mixed economic data and slowing economic growth in the first quarter of 2018.
On the other hand, the greenback was slightly lower with lower bond yields and less than expected inflation data, 10-year bond yields fell below 3%, and the dollar index is currently trading at 93.12.
Core CPI rose by 2.1% on yearly basis in April, with expectations for a 2.2% rise. Also, one of the factors that played a role in the calm of US dollar announcement of US President Donald Trump withdrawal from the Iranian nuclear agreement to support on the other hand oil prices, which recorded their highest levels over several years.
The New Zealand dollar hit its lowest level in 5 months at 0.9601 against the US dollar, after the Reserve Bank of New Zealand kept interest rates unchanged at 1.75%, leaving the door open to cut rates.
