BoE confirms first gilt sale operation will take place Nov. 1

Band of England confirms the first gilt sale operation will take place on November 1 which has put some short-term volatility into GBP/USD.

The Monetary Policy Committee's decision at the September meeting to reduce the stock of purchased gilts is ‘unaffected and unchanged.

This puts to rest the speculation that there would be a delay to the sales and coupled with the U-turn in UK politics, the pound is now driven by the Bank of England's rate hike expectations again. There is less speculation for an aggressive hiking path given the concerns over the economy and cable has been pressured again on Tuesday. 

GBP/USD has been as low as 1.1255 on the day, down from 1.1410. It is testing 1.13 at the time of writing. 

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