The British pound reached new multi-year highs, surpassing 1.33 USD due to diverging monetary policies between the Bank of England and the United States Federal Reserve.
Fed Chairman Jerome Powell emphasized there's no rush to further ease monetary policy, indicating that recent rate cuts might not set a new standard for future monetary policy.
The divergence between the BoE's decision to maintain rate at 5% and the Fed's recent cut to 50 basis points has significantly influenced the GBP/USD dynamics.
Market expectations forecast approximately 42 basis points of rate cuts by the BoE before year-end, reflecting the shifts in current monetary policy approaches between the UK and US.
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