That has seen cable fall to a low of 1.2050 after having earlier risen in the run up to the decision as it seemed that traders were getting a tiny bit excited that the BOE may perhaps be more aggressive.

The push higher earlier stalled around the 100-hour moving average and sellers were quick to send cable back down in the aftermath of the BOE decision, with price falling from 1.2150 to 1.2050 levels at the moment.

The BOE remains in a rather unenviable spot so you can’t really blame them for going with just a 25 bps rate hike. A 50 bps rate hike on paper may look like they are being more serious to combat inflation but at this point with inflation nearing double-digits, it hardly matters. Instead, it would just invite more recession risks as mentioned earlier here.

The latest policy step by the BOE does little to change the overall outlook that markets are still likely to be less certain about the central bank’s appetite to keep hiking as the economy starts to run into the ground. The UK remains the lead runner in the recession race and that factor alone is enough to keep pressure on the quid in the bigger picture of things.

This article was written by Justin Low at www.forexlive.com.