Home Daily Commentaries Sterling at risk as BoE may signal faster rate cuts

Sterling at risk as BoE may signal faster rate cuts

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Tuesday 6 May, 2025

Daily Currency Update

The pound could come under pressure if the Bank of England lowers its growth and inflation forecasts at Thursday’s meeting and drops its reference to a gradual pace of rate cuts. Given the BoE’s recent trend of aggressive forecast revisions, there's a real chance it could signal a shift this week. Scrapping the gradual language would open the door to faster, deeper rate cuts, removing one of the few remaining supports for the pound.

Key Movers

The US dollar weakened against major currencies, including the euro, as markets reacted to renewed uncertainty surrounding President Trump's economic policies. In a Sunday interview, Trump doubled down on his tariff-driven approach, claiming that import duties would ultimately make Americans richer. His announcement of a new 100% tariff on foreign-made films added to market concerns, fuelling volatility and weighing on the dollar as investors grew wary of the broader economic impact.

Expected Ranges

  • GBP/USD: 1.3285 - 1.3385 ▲
  • GBP/EUR: 1.1715 - 1.1785 ▼
  • GBP/AUD: 2.0615 - 2.0695 ▲
  • EUR/USD: 1.1295 - 1.1385 ▲

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.