NY Focus: The US dollar was on the defensive when New York traders started their day. European holidays and “Super Thursday” in the UK encouraged profit-taking following the greenbacks healthy gains earlier this week.
UK economic reports were mildly positive which lifted GBPUSD from 1.3583 at the New York open to 1.3616. Sterling bulls were feeling quite smug. Moments later the Bank of England announced that rates and quantitative easing guidance were unchanged. That was expected. The downgrading of the 2018 growth forecast to 1.4% from 1.8% was not. GBPUSD went into free-fall until finding a bottom at 1.3462. Prices ticked up to 1.3520 as the UK closed and stayed in the area for the rest of the session.