USD declines after Fed signals patience on rates while BoE’s 6-3 vote highlights inflation uncertainty amid energy shocks.
The USD fell against major currencies early July 30, led by declines of 0.30% vs JPY, 0.35% vs AUD, and 0.76% vs NZD. The move followed the Fed’s decision to hold rates steady, with Chair Jerome Powell suggesting the central bank may follow market expectations during stable periods.
The Bank of England kept rates unchanged in a 6-3 vote, defying expectations of a 7-2 split favoring a hike. Policymakers cited uncertainty over energy price shocks and limited evidence of second-round inflation effects, though risks remain tilted to the upside.
GBP showed little reaction, edging up 0.07% as the BoE reiterated readiness to act if inflation pressures persist. The dissenters—Greene, Pill, and Mann—expressed less confidence in underlying inflation trends.