Pound Sterling Price News and Forecast: GBP flattens

Pound Sterling flattens while BoE Dhingra supports quick monetary expansion cycle

The Pound Sterling (GBP) trades sideways against its major peers on Tuesday as investors look for fresh cues about the likely monetary policy action by the Bank of England (BoE) this year. In the policy meeting earlier this month, the BoE reduced its key borrowing rates by 25 basis points (bps) to 4.5% and guided a gradual policy easing stance.

However, BoE Monetary Policy Committee (MPC) member Swati Dhingra favored a quick monetary expansion cycle due to the weak demand environment in her speech at Birkbeck on Monday. “I know ‘gradual’ has been interpreted in the media as 25 basis points (bps) per quarter, but cutting interest rates at this pace for the remainder of 2025 would still leave monetary policy in an undesirable restrictive position at the end of the year,” Dhingra said. She also warned that “consumption weakness is just not going away”, which is why she is favoring to “reduce the level of monetary policy restriction”. Read more…

GBP/USD Forecast: Pound Sterling looks to extend correction

GBP/USD turned south after advancing to a multi-month high at the weekly opening and closed marginally lower on Monday. The pair stays relatively quiet below 1.2650, while the technical outlook points to a loss of bullish momentum.

The upbeat market mood made it difficult for the US Dollar (USD) to find demand early Monday and helped GBP/USD push higher. In the second half of the day, the negative shift seen in risk sentiment supported the USD and weighed on the pair. Read more…