Rabobank explained why GBP is going down
The pound did not hold its morning growth after the Bank of England left its quantitative easing program unchanged, but left the door open for future new incentives. The bank made it clear that it simply postponed the decision to raise the QE target by "another month or so," which led to a decline in the sterling rate, says Jane Foley of Rabobank. The Bank of England has also outlined a "rather bleak" outlook for the UK economy, she adds. The pound remains "vulnerable" to a possible extension of the Bank of England bond purchase program in June, Brexit's risks and criticism of the UK government's response to the Coronavirus crisis, she says.
GBP/USD is down 0.5% to 1.2281 and Rabobank says the pair could potentially fall to 1.19 in three months.