Pound Sterling trades with caution while BoE guides gradual interest rate cut approach
The Pound Sterling (GBP) trades cautiously against its peers on Thursday despite Bank of England (BoE) officials reiterating a “gradual and cautious” policy easing approach while testifying before Parliament’s treasury department on Wednesday.
BoE Monetary Policy Committee (MPC) member Megan Greene advocated for a “gradual path” for “removing monetary policy restrictiveness” as the inflation persistence is less likely to fade on its own accord. BoE Chief Economist Huw Pill argued that there is more work to do to “squeeze out” underlying inflation. Read more…
GBP/USD Forecast: Pound Sterling technical corrections to remain shallow
GBP/USD extended its rally into a third consecutive day on Wednesday and gained nearly 0.8%. The pair is already up about 2.5% this week as it trades at its highest level since November, above 1.2900.
The positive shift seen in risk mood forced the US Dollar (USD) to stay under pressure midweek, allowing GBP/USD to gather further bullish momentum. News of US President Donald Trump granting the US automative industry a one-month exemption from 25% tariffs imposed on Canada and Mexico, and planning to do the same for some agricultural products, helped the risk mood improve on Wednesday. Read more…
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