Pound Sterling Price News and Forecast: GBP drops against its peers after BoE’s decision

British Pound drops against its peers after BoE’s monetary policy decision

The British Pound (GBP) drops against its major currency peers after the Bank of England’s (BoE) monetary policy decision. The GBP/USD pair edges lower from its intraday high of 1.3405 to near 1.3380; however, the initial reaction from the pair was slightly positive.

 The BoE has kept interest rates steady at 3.75%, as expected; however, the number of Monetary Policy Committee (MPC) members voting for a hold remained lower-than-expected. Read more...

GBP/USD Price Forecast: Keeps the red near 1.3350 as traders await BoE rate decision

The GBP/USD pair meets with fresh supply on Thursday and retreats further from the weekly high, around the 1.3385-1.3390 region, touched the previous day. Spot prices stick to modest intraday losses through the first half of the European session and currently trade around mid-1.3300s amid a broadly firmer US Dollar (USD).

Following the previous day's post-FOMC decline, the USD regains positive traction as rapidly changing inflationary dynamics due to volatile oil prices keep the US Federal Reserve (Fed) rate hike bets firmly on the table. Apart from this, escalating US-Iran tensions turn out to be another factor underpinning the safe-haven Greenback. The downside for the GBP/USD pair, however, seems cushioned as traders opt to wait for the crucial Bank of England (BoE) decision and important US macro data. Read more...

British Pound declines as Fed hawkish rate holds boost US Dollar, BoE rate decision looms

The GBP/USD pair attracts some sellers to near 1.3345 during the early European trading hours on Thursday. The US Dollar (USD) edges higher against the British Pound (GBP) amid hawkish Federal Reserve (Fed) signals and escalating Middle East tensions. The Bank of England (BoE) interest rate decision will take center stage later on Thursday. 

As widely expected, the Fed left the Federal Funds Rate in its current target range between 3.50% and 3.75% at its July policy meeting on Wednesday. However, the statement showed that three committee members voted for a 25-basis-point rate hike at this meeting. During the press conference, Fed Chairman Kevin Warsh said that tightening in the market has done quite a bit of work for policymakers. He added that the committee will be quick to act if inflation pressures accelerate.  Read more...