GBP/USD bounces as UK yields rise after BOE rate cut

The 0.25% rate cut from the Bank of England yesterday, was met with an immediate negative reaction in the Pound. That came following the revelation, that two voting members wanted a 0.50% cut and one of those members had previously been advocating a rate increase. That was the initial kicker for the Pound, as it slid towards 1.2350. Well, as you now know the GBP/USD did not stay down there for long and rebounded back above 1.2450 after the European close. Two reasons for that- First that 0.25% rate was entirely baked in and second UK yields did not fall, they rose. In a considered view here, the Bank should have acted more aggressively yesterday and the humble view on that, is it was a mistake not to do so. So, leaving that aside, UK yields are higher today and reflect that missed opportunity by the looks of it. The GBP/USD closed at 1.2435 last night. The range seen so far today has been covered by 1.2420 to 1.2443. So, it is probably over to the dollar now ahead of the weekend, to decide if it now falls below 1.2350, or reverses higher above 1.2500 again. The GBP/USD is right now at 1.2424