BOE's Bailey: On the exchange rate, there are US Dollar specific factors at work

ON THE EXCHANGE RATE, THERE ARE DOLLAR SPECIFIC FACTORS AT WORK. - How to say nothing.

"STERLING WEAKNESS PARTIALLY DUE 'TO THE STRENGTH OF THE DOLLAR'" - It takes a central bank chair to explain that when the dollar goes up, the GPBUSD pair goes down?

Bailey just stated that they focus more on the exchange rate between GBP/USD then any other pair. Same as other CB also do. Jordan from SNB also said in the past that they aren't entirely focused on EUR/CHF exchange rate anymore, but that they now focus on something else which could also indicate USD. Also, BoJ is doing the same focusing on USD entirely as to if they are going to intervene or not. Even though USD is getting stronger day by day, time will come when all of them will make a deal to one day intervene together and bring USD value down against their currencies. This will definitely happen if appreciation of USD against other currencies continues.

"ON THE EXCHANGE RATE, THERE ARE DOLLAR SPECIFIC FACTORS AT WORK", one of the greatest statement issued by BOE following Bank of Japan's members...... More drama ahead

There is nothing they can do about the relative strength of the dollar as long as commodities are priced in dollars. As demand for commodities goes up, so will the price of the dollar, and as the price of the dollar goes up, the more native currency is required to exchange per dollar.

Besides dollar strength there are some other factors indeed which are being looked at as we speak. Main one is which countries/actors have been shorting and keep slamming down the GBP, EUR and JPY for the past few months.