The Pound sits still through a hawkish hearing and the priciest gilt sale
GBP/USD trades just under 1.3550 after a session that spanned 40 pips and returned two-tenths of a pip.
The Pound remained unchanged as the Bank of England conducted a hawkish hearing and sold its most expensive gilt since records began. The Bank Rate was held at 3.75% during the July Monetary Policy Report. The testimony from four MPC members was scored as hawkish, despite the Governor's request to drop the idea of an unconditional plan to raise rates.
Gilt markets responded positively to the information, with the 30-year bond sold at 5.82%, the highest since 1998. Concerns about further energy price rises and Brent Crude Oil near $98.00 contributed to the market's pricing. Sterling was weaker against major peers during the hearing, and the Euro cross rebounded off a six-day low.
Economic data releases, including the US inflation print and the Bank's Consumer Price Index, will provide further insight into the pound's trajectory.
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