Pound Sterling Price News and Forecast: GBP/USD pauses ahead of Bank of England rate decision

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GBP/USD pauses ahead of Bank of England rate decision

GBP/USD is holding near 1.3315 on Tuesday. The pound posted a modest gain the previous day but remains close to three-month lows amid ongoing uncertainty over the impact of the Middle East conflict on the global economy and inflation. Investors continue to favour the US dollar as a key safe-haven asset.

Since the onset of the conflict involving Iran, the dollar has been the primary beneficiary of safe-haven demand, outperforming gold, government bonds, and currencies such as the Swiss franc. Meanwhile, the pound has shown relative resilience compared with several other currencies: over the past three weeks, it has declined by approximately 1.7%, while the yen and euro have lost around 2.0% and 3.0%, respectively. This relative strength is partly due to the UK’s lower dependence on energy imports and its higher interest rate environment. Read more...

Pound Sterling underperforms against its peers as Fed-BoE policy takes centre stage

The Pound Sterling (GBP) trades lower against its major currency peers, except the New Zealand Dollar (NZD), is down 0.27% to near 1.3280 against the US Dollar during the European trading session on Tuesday. The British currency faces selling pressure amid uncertainty surrounding the Bank of England’s monetary policy announcement on Thursday.

Investors expect the BoE to leave interest rates unchanged at 3.75%, with a 7-2 majority, as conflicts in the Middle East, which involve the United States (US), Israel, and Iran, have prompted inflation expectations in the United Kingdom (UK) and the entire world. Read more...

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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