Any idea why the GBP fell so hard?
The smart (ie, institutional) money already knew that a rate hike would happen, which is why GBP had been strengthening for the last week or so - the price was getting pushed up as the institutional investors opened their buy orders. This means that the rate hike was essentially already priced in by the time the actual announcement happened.
So the real ‘surprise’ was in the small print: the BoE decision was not unanimous, and the prepared statement made it clear that no further rate hikes are planned for the near future. So the big players decide that the party is officially over, and it is time to take profits.
Which pushes the price down.
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It seems GBP goest never ending down train. Just watching the game.
Really? I’m pretty sure that GBP hit a 4+ month high against the EUR a day or two ago.
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I’m actually glad it’s going down, very useful 
Exactly…
Same as large Corporate’s Share Prices slide after a profit is announced … it’s already factored in by the market.
Er - they have telephones and e-mail 
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