BoE rate hike drives the Pound crazy and dollar remains volatile over tax bill announcement.

The BoE was the key event and moves continued in the US day. GBP/USD was hit hard on the dovish hike outcome, in a sell the fact scenario with a twist of dovishness where there was no mention of further hikes in “coming months” along with the removal of the line saying policy could be tightened more than the market expects. Also, the BoE now sees only two more moves over next three years. GBP was falling after the BOE rate hike from 1.3240 to 1.3043. EUR/GBP bulls were up from the 200 to the 100 -D SMA.

EUR rose from 1.1630 to 1.1690 while USD/JPY traded around 114.10 but fell to 113.54 on the US tax plan announcements as did equities. The Aussie consolidated its gains from overnight after a dip to 0.7694 before moving back onto the 0.77 handle while the Kiwi ranged between 0.6890 and 0.6935.