The GBP/USD currency pair has shown volatility, recently losing bullish momentum and settling around the 1.3370 level. Markets are waiting for the Bank of England's announcement amidst uncertainties about UK monetary policy. A likely 25-basis-point interest rate cut is expected as the Monetary Policy Committee may vote 7-3 in favor of the reduction. Concerns arise regarding the potential signaling of a longer-term easing cycle from the BoE. This situation reflects broader global economic uncertainties, impacting U.S. monetary policy as well, especially in light of recent developments surrounding the Fed chair appointment.
The GBP/USD pair has experienced noticeable volatility over the past few days, losing its bullish momentum after a brief two-day rebound, settling near the 1.3370 level during Thursday's Asian session.
While these levels may appear technically neutral at first glance, a closer look reveals that markets are cautiously awaiting the Bank of England's upcoming announcement amid mounting uncertainty surrounding the future of UK monetary policy.
The widely expected 25-basis-point interest rate cut by the BoE isn't surprising in itself, but it comes at a time of high economic complexity.
Market consensus suggests a 7-3 vote by the Monetary Policy Committee in favour of the cut, lowering the benchmark interest rate from 4.25% to 4.00%.
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