GBP/USD falls toward 1.3600 ahead of BoE policy decision
GBP/USD extends its losses for the second successive session, trading around 1.3620 during the Asian hours on Thursday. The pair weakens as the Pound Sterling (GBP) comes under pressure ahead of the Bank of England’s (BoE) interest rate decision later in the day. The BoE’s MPC is widely expected to keep policy unchanged in February, with little anticipated to alter longer-term fundamentals after a narrow 5–4 vote to cut rates by 25 bps in December.
The GBP/USD pair depreciates as the US Dollar (USD) advances on hawkish signals from the Federal Reserve (Fed) and expectations of a slower pace of US rate cuts. Moreover, the implications of Kevin Warsh’s nomination as Fed chair is citing his preference for a smaller balance sheet and a less aggressive approach to rate reductions. Read more…
GBP/USD churns near 1.3700 ahead of BoE rate call
GBP/USD remains trapped in a near-term cycling pattern on Wednesday, continuing to churn aimlessly between 1.3700 and 1.3650. Cable traders are unlikely to pick a meaningful direction until after the Bank of England’s (BoE) latest interest rate decision, due during Thursday’s London market session. However, it is unlikely that the BoE’s Monetary Policy Committee (MPC) will deliver anything of note that will actually shift long-term fundamentals.
After a razor-thin 5-4 vote to trim interest rates another 25 bps in December, the MPC is broadly expected to hold interest rates steady on Thursday; rate markets show a scant 4.1% chance of a February interest rate cut from the BoE. Read more…
GBP/USD stalls below 1.3700 as markets await BoE rate decision
The Pound Sterling (GBP) drops against the US Dollar (USD) on Wednesday, and it remains trading below the 1.3700 figure, posting losses of 0.23% as traders wait for the Bank of England’s (BoE) monetary policy decision. Market mood is mixed as investors rotate out of tech companies, amid the uncertainty about the business risks of AI. In the meantime, a short-lived government shutdown in the US delayed the release of the US Nonfarm Payrolls report for January and other labor market data.
Consequently, traders got back to other data, such as the ADP Employment Change for January, which revealed that private companies hired 22K people, missing estimates of 48K jobs created in the first month of 2026. In the meantime, the Institute for Supply Management revealed that the Services Purchasing Managers Index (PMI) for January exceeded estimates of 53.5, rose by 53.8, unchanged from December’s reading. Read more…
