GBPUSD showing signs of slipping as BoE announces additional market support
.png)
The BoE has announced an increase in its daily gilt purchases and will implement measures to ensure calm prevails as its emergency bond-buying programme winds up. The central bank intervened in the bond market after the government's mini-budget sparked a sell-off, threatening the UK's pension sector. The emergency intervention is due to end on Friday, 14 October. The measures include:
- The bank is ready to increase the size of its daily auctions to ensure the capacity for gilt purchases. Accordingly, the BoE will confirm the maximum auction size each morning at 9 am.
- It will launch a Temporary Collateral Repo Facility (TECRF). This structure will help ease liquidity pressures.
- The bank will utilise its regular Indexed Long Term Repo operations each Tuesday to support a further easing of liquidity if needed.
GBPUSD has started to retreat over the last few trading days. It now threatens to drop back into the weak area between the lower blue and red bands. Moreover, its stochastic is starting to roll over (blue arrow). The momentum behind the bounce off of the 26 September lows is beginning to wane.
References
https://www.bankofengland.co.uk/news/2022/october/bank-of-england-announces-additional-measures-to-support-market-functioning
Image by Stefan Schweihofer from Pixabay
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.