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GBP/CHF reverses and tumbles below 1.5300

FXStreet (Córdoba) - GBP/CHF reversed sharply and fell more than 100 pips from daily highs and tumbled to 1.5263, reaching the lowest price in two weeks.

The pair jumped to 1.5409, highest price since last Friday, after employment data from the United Kingdom but then turned to the downside as the pound plummeted across the board weakened by the release of the Bank of England Quarterly Inflation report.

The central bank cut it forecasts for growth and inflation while the Governor, M. Carney said that a rate rise will take place “when it’s appropriate”. After the report, market expectations of the first rate hike in years move from June to September 2015.

Cable lost all gains and retreated across the board. Among European currencies the Swiss franc is so far the best performer on Wednesday, trading at weekly highs versus the pound and near 2-year highs against the euro.

BOE’s QIR pushes GBP down - TD Securities

Paul Fage, Senior Emerging Markets Strategist at TD Securities notes that the dovish tone of the BOE’s inflation report were the prime catalyst to push GBP to set new lows for the day.
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Dollar Mixed As Consolidative Tone Continues – BBH

Marc Chandler, Global Head of Currency Strategy at BBH Global notes that the consolidative tone that has been a general feature of the foreign exchange market continues today, leaving the US dollar broadly mixed.
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