Sterling jumps after BoE interest rate cut
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Daily Currency Update
GBP/USD pushed through 1.34 yesterday as the Bank of England cut interest rates by 0.25% to 4%. The cut was widely expected however, it was only narrowly passed by the Bank's Monetary Policy Committee with five votes to four agreeing to the easing of policy. With the likelihood of more rate cuts this year receding, the pound jumped across the board. The accompanying report stated; “trade policy uncertainty has diminished” with the recently signed US/UK trade deal supporting sterling. Despite this upbeat news the UK has to deal with an economy that is slowing, so any gains could be short lived if more data points to growth grinding to a halt. GBP/USD currently trades around 1.3440.Key Movers
The US dollar remains under pressure as we end the week as Donald Trumps import tariffs come into effect. There is little data of note today so it could be a quiet end to the week with Tuesday's US inflation data the next top tier release. EUR/USD trades around 1.1650.Expected Ranges
- GBP/USD: 1.3390 - 1.3500 ▲
- GBP/EUR: 1.1480 - 1.1620 ▲
- GBP/AUD: 2.0500 - 2.0670 ▲
- EUR/USD: 1.1580 - 1.1710 ▲